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Abu Dhabi oil sector to see spending cuts

'Investments in offshore exploration remain on track'.

Abu Dhabi: Abu Dhabi will continue its multi-billion investments into offshore oil and gas exploration activities in the next five years, ignoring the low oil price situation, says a top official.
"This is not the first price cycle in the industry. I have seen it five times in my career. Our strategy at Adnoc is to manage resources over the long term," Ali Rashid Al Jarwan, chief executive officer (CEO) of Abu Dhabi Marine Operating Company or Adma-Opco said.
Al Jarwan said operating costs are low for Adma, Zadco and Total. This is why Abu Dhabi is developing operational efficiency, the chief executive said.
"We are targeting operating costs to be more efficient to comply with the current prevailing prices. We are committed to manage the schedules as much as possible," Al Jarwan said at the inaugural Adipec Offshore and Marine Conference. "But I am happy to see a very healthy offshore industry in Abu Dhabi."
The chief executive said it was Adma-Opco's time to shine in terms of developing offshore fields in Abu Dhabi, given that his company continued to award projects in the current environment.
'Healthy situation'
"It's a win-win situation for us, for contractors, sub-contractors and for the market in Abu Dhabi. It is a healthy situation, but we have to help each other to develop very strong partnerships and foster innovation."
Al Jarwan highlighted how Abu Dhabi is actively acquiring the world's largest amount of seismic survey data over 2,730 square kilometres of offshore territory.
Adma and Zadco, the two offshore exploration and development subsidiaries of Adnoc, have together deployed 30 jack-up rigs, and nine land rigs which operate from specially developed artificial islands.
The chief executive said Adnoc is committed to achieve one million barrels of oil per day (bpd) from Adma-Opco and Zadco.
Earlier, in a keynote address at the Offshore and Marine Conference, Al Jarwan welcomed global oil industry experts. The event provided a platform for the exchange of knowledge and information on the offshore sector.
Boosting output
Topics discussed on the first day of the three-day conference included the current economic outlook on the industry, future trends and challenges and their impact on the global offshore sector, and China's role as a supplier of energy services.
With $25 billion worth of investments in offshore oil projects planned by Adnoc over the next five years, advancing the sector through developments in research and technology is becoming ever more critical, said industry leaders.
The Adnoc investment is part of the UAE's strategy to boost its total oil output capacity to 3.5 million bpd by 2017-'18 from the current 2.8 million bpd.
The inaugural conference complements the Offshore, Marine and Heavy Equipment Zone.
A purpose-built zone that provides water access, mooring and quayside exhibition space allowed more than 80 exhibitors to showcase a host of offshore products and services, including ships, rigs and vessels, subsea drilling equipment, oceanography and mapping equipment, pipelines and piping components, and tools for reservoir production and monitoring.
haseeb@khaleejtimes.com