EXPLORATION AND PRODUCTION OPERATIONS

Exploration and Production operations ,  three major operating companies ADCO(onshore),  ADMA-OPCO and ZADCO(both offhore)-dominate the oil scene in Abu Dhabi.  These three companies are responsible for all exploration,  development and production operations in their respective concession areas and account for almost all of Abu Dhabi’s output of oil and gas. 

In view of Abu Dhabi’s huge reserves,  the exploration programs of the operating companies essentially aim to acquire more accurate data about known reserves and structures rather than make fresh discoveries.  However,  through the execution of these programs,  the operating companies have on occasion located additional reserves.  In 2005 Abu Dhabi’s total oil production was about 2,250,000 bpd of which ADCO(onshore)  produced around l 230.000 bpd,  ADMA and ZADCO(both offshore)  produced around 960,000 bpd(560,000 bpd for ADMA and 400,000 bpd for ZADco),  and the other four small companies accounted for 60,000 bpd between them.  Abu Dhabi has maintained its efforts to step up its production capacity.  It was reported in 2004 that the emirate had a spare capacity of at least 500,000 bpd,  but that the authorities had set a target for the operating companies to increase total production capacity to around 3 here are no reports to Mbps 2008 and mbpd by 2010. 

As of confirm that the t et figure for 2006 was achieved DNOC’s Independent Activities ll arketing ADNOC quickly realized that reliance on foreign oil companies to market its own share of oil would keep it in a weak position.  TN company was also aware of the importance of retaining direc independent contacts with intemational markets,  thereby establishing relationships while building its reputation and experience ADNOC’s first experience in this field came in 1973 after th conclusion of the first participation agreement,  when it sold its share of equity oil(amounting to 32,000 bpd)  to the Japanese company Japan Line,  ADNOC’s direct sales went on to increase dramatically,  while the company continued to implement its policy of expanding its markets and diversifying its clients.  Some of the core principles of ADNOC’s marketing policy have een to avoid dealing with intermediaries;  to severely restrict the resale of its crude;  and not to participate in spot market sales.  M of its clients have been independent,  medium sized oil companies(although some Majors are among its clients)  which possess refineries and outlets of their own.  A small number of government to government sales contracts have been signed but they cover limited quantities and have been of marginal significance in terms o ADNOC’s overall marketing operation.  ADNOC currently markets its entire share of oil and gas as well as refined products Refining Refining activity is an important link in the chain of operations o an integrated oil industry and all major oil companies have the own capability.  The economic advantages for a producing country of economy Vandal receive reason member refinish import satisfy Ab plant open orient Refine response industry both i Local As ea of ref of  District 1973 mark refine also deficit station epsilon to on. 

Th rect blishing fter the sold its policy y have the of panies possess to ms of arkets ons o the ucing THE ORGANIZATIONAL STRUCTURE oF THE ABU DHABI OIL INDUSTRY country of refining part of its oil production rather than exporting all of its crude are well known:  it contributes to the accelerated economic development and industrialization of the country;  provides advanced skills and technical experience;  and allows the country to receive the optimum value of its natural resources.  

Leave a Reply

Your email address will not be published. Required fields are marked *