The UAE is raising its crude production to almost 3 million barrels per day (b/d) by increasing output from its offshore Umm Lulu oilfield, sources with knowledge of the matter told S&P Global.
The UAE’s reported production rates hit annual highs of 2.975 million b/d in July, a 85,000 b/d increase from June.
OPEC and 10 non-OPEC producing countries agreed on June 23 to increase production by 1 million b/d to compensate for lower output rates from countries such as Venezuela.
UAE production increases are coming mostly from its new offshore concession which includes the Umm Lulu and Satah al-Razboot (SARB) fields.
ADNOC launched a new grade of light, sweet crude this year which is a blend of crude from both fields with an expected API gravity of around 39 degrees.
The Umm Lulu field was producing roughly 30,000 b/d in August, but could hit 75,000 b/d thanks to the loosening of production restrictions, a UAE oil insider stated. ADNOC has stated it wants to reach a combined output of 215,000 b/d from the Umm Lulu and SARB fields.
ADNOC also plans to raise production from its largest oilfield, Upper Zakum, by 20%. However, the increase has been delayed until at least Q1 2019, a contractor working on the project stated last week.
The company aims to increase its overall production to 3.5 million b/d by the end of 2018 and announced in statement in July that it “has the ability to increase oil production by several hundred thousand barrels of oil per day, should this be required.”
Energy Minister Suhail al-Mazrouei is serving as OPEC’s rotating president for this year, and will attend a six-country monitoring committee meeting on September 23 in Algiers to discuss production allocations.