OMV: Oil starts flowing from offshore oil fields in UAE
Austria’s OMV has said production has started from the Umm Lulu and SARB (Satah Al Razboot) fields offshore the UAE.
The oil firm said the production level shows an initial capacity of 50,000 barrels per day (10,000 barrels per day net to OMV), which will increase to 129,000 barrels per day (25,800 barrels per day net to OMV) by the end of 2018 and 215,000 barrels per day (43,000 barrels per day net to OMV) by 2023.
The Vienna-based OMV in April this year signed an agreement for the award of a 20% stake in the offshore concession Abu Dhabi – SARB (with the satellite fields Bin Nasher and Al Bateel) and Umm Lulu as well as the associated infrastructure. The agreed participation fee amounted to USD 1.5 bn and the duration of the contract is 40 years.
The SARB field, 120 km away from Abu Dhabi, and the Umm Lulu field, about 30 km away from Abu Dhabi, are both located offshore in shallow waters. The early production in Umm Lulu started in the fourth quarter of 2016.
OMV’s share of the reserves, for the period of the concession agreement, would amount to approximately 450 mn barrels oil for the two main fields, with upside potentials from the satellite fields Bin Nasher and Al Bateel, the company said.
OMV’s capital expenditures over the contract term are estimated to amount to approximately $2 bn, thereof approximately USD 150 mn will be spent per annum during the first five years, OMV said on Thursday.