Abu Dhabi oil investment at all time high

Abu Dhabi’s investments in its massive hydrocarbons sector surged to a record high of more than Dh43 billion in 2010 as the emirate is pushing ahead with mega projects to expand output capacity, official data showed.

The investments last year were nearly 29 per cent above the capital pumped in 2009 and more than double the oil investments in 2008 when crude prices climbed to their highest average of nearly $95 a barrel.

The figures, published in Abu Dhabi’s yearbook released this week, showed the total fixed capital formation in the emirate’s hydrocarbon industry stood at Dh43.7 billion in 2010, up from Dh33.9 billion in 2009 and Dh18.5 billion in 2008. They were nearly six times the emirate’s oil investments of Dh7.2 billion in 2005.

Last year’s investments accounted for almost 24.6 per cent of the total fixed capital formation of Dh177.4 billion, which was the highest in the emirate.

Abu Dhabi is the main oil producer in the UAE, which aims to boost its crude output capacity above three million barrels per day in the next few years.

Official figures showed Abu Dhabi alone is pumping more than $10 billion during 2005-2011 into crude oil expansion projects, which target both its onshore and offshore areas, mainly the super-giant Upper Zakum and other major fields.

Around $1.5 billion (Dh5.5 billion) would be spent on the development of the offshore Upper Zakum to add 200,000 bpd to its 550,000 bpd capacity.

An equivalent sum has also been allocated for the expansion of the mammoth Umm Shaif offshore field and $two billion for the Nasr Field development by the Abu Dhabi Marine Oil Company (ADMA-OPCO).

The Abu Dhabi Onshore Oil Company (ADCO), one of the largest 10 oil companies in the world, is investing nearly Dh5.5 billion into its Phase 1 Development Programme, which will add about 400,000 bpd to its output.

The projects are part of an ongoing programme by the UAE, a key OPEC member, to expand its sustainable crude oil capacity, which official sources estimated at nearly 2.8 million bpd at the end of 2010.

While such projects will boost capacity to well above three million bpd in four years, there are plans to push ahead with expansions to reach 3.5 million bpd in the long term to tap the country’s massive hydrocarbon reserves of nearly 98.7 billion barrels, more than eight per cent of the world’s total proven oil wealth.

The figures showed the industrial sector was the second largest capital recipient in Abu Dhabi last year, with around Dh28.4 billion.

It was followed by the electricity and water sector, which received nearly Dh18.2 billion. Investments stood at Dh17.4 billion in real estate and business services, around Dh12.5 billion in transport and communications, Dh4.8 billion in construction and about Dh2.59 billion in social and personal services.

In non-civilian sectors, Abu Dhabi spent around Dh42 billion on the public administration and defence sector.

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