Identifier
Created
Classification
Origin
03ABUDHABI3721
2003-08-12 13:30:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
UAE MAY CUT OIL PRODUCTION LATER THIS YEAR
how-tonull Diana T Fritz 03/21/2007 11:34:59 AM From DB/Inbox: Search Results Cable Text: CONFIDENTIAL SIPDIS TELEGRAM August 12, 2003 To: No Action Addressee Action: Unknown From: AMEMBASSY ABU DHABI (ABU DHABI 3721 - ROUTINE) TAGS: EPET, PGOV, BEXP, ENRG, ECON, EINV Captions: None Subject: UAE MAY CUT OIL PRODUCTION LATER THIS YEAR Ref: None _________________________________________________________________ C O N F I D E N T I A L ABU DHABI 03721 SIPDIS CXABU: ACTION: ECON INFO: AMB DCM POL P/M Laser1: INFO: FCS DISSEMINATION: ECON CHARGE: PROG APPROVED: CDA: RALBRIGHT DRAFTED: ECON:CCRUMPLER CLEARED: ECON: GRANA VZCZCADI268 RR RUEHC RUEHHH RUEHDE RUCPDOC RHEBAAA DE RUEHAD #3721 2241330 ZNY CCCCC ZZH R 121330Z AUG 03 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 1257 INFO RUEHHH/OPEC COLLECTIVE RUEHDE/AMCONSUL DUBAI 3335 RUCPDOC/USDOC WASHDC RHEBAAA/DEPT OF ENERGY WASHDC
C O N F I D E N T I A L ABU DHABI 003721
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO
USDOE FOR OFFICE OF THE SECRETARY - RHONDA HUDOME
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 08/12/08
TAGS: EPET PGOV BEXP ENRG ECON EINV TC
SUBJECT: UAE MAY CUT OIL PRODUCTION LATER THIS YEAR
C O N F I D E N T I A L ABU DHABI 003721
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO
USDOE FOR OFFICE OF THE SECRETARY - RHONDA HUDOME
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 08/12/08
TAGS: EPET PGOV BEXP ENRG ECON EINV TC
SUBJECT: UAE MAY CUT OIL PRODUCTION LATER THIS YEAR
1. (U) Classified by Charge d'Affaires, a.i., Richard A.
Albright, for reasons 1.5 (B) and (D).
2. (C) The Abu Dhabi National Oil Company (ADNOC)
acknowledged publicly on August 10 that it will cut oil
production in the last quarter of 2003 to undertake major
repair work in the Lower Zakum and Umm Shaif offshore oil
fields. ADNOC analysts say that production from those two
fields could be reduced by as much as 40 percent. ADNOC
will try to make up for the shortfall by increasing
production of the higher grade Murban crude from other,
unspecified fields. A Western oil executive confirmed to
Econoff that the scheduled maintenance includes renovations
and upgrades that had been delayed earlier this year
because of the war in Iraq. ADNOC deferred work that could
have affected the production of any one field, and stood
ready to ramp up production to offset shortages caused by
the loss in Iraqi exports.
3. (U) Current production from those two fields is
estimated at about 420,000 barrels per day (bpd). The Abu
Dhabi Marine Operating Company (ADMA-OPCO) quarterly
bulletin states that current production in the Zakum field
stands at 220,000 bpd and Umm Shaif produces about 200,000
bpd. Umm Shaif also has become a major gas producer for
the UAE since the completion of the Umm Shaif Gas
Development Project in 1994.
4. (C) Comment: Both the Zakum and Umm Shaif fields play a
major role in the UAE's total oil production and oil
exports -- Zakum alone has 321 oil and gas wells. Although
the Western oil exec said that Japan and India are the two
major oil importers of the lower grade Zakum and Umm Shaif
crude, the announcement nonetheless will put upward
pressure on oil prices worldwide. The news comes during a
week when oil prices have spiked to their highest levels
since before the onset of hostilities in Iraq. End
comment.
Albright
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO
USDOE FOR OFFICE OF THE SECRETARY - RHONDA HUDOME
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 08/12/08
TAGS: EPET PGOV BEXP ENRG ECON EINV TC
SUBJECT: UAE MAY CUT OIL PRODUCTION LATER THIS YEAR
1. (U) Classified by Charge d'Affaires, a.i., Richard A.
Albright, for reasons 1.5 (B) and (D).
2. (C) The Abu Dhabi National Oil Company (ADNOC)
acknowledged publicly on August 10 that it will cut oil
production in the last quarter of 2003 to undertake major
repair work in the Lower Zakum and Umm Shaif offshore oil
fields. ADNOC analysts say that production from those two
fields could be reduced by as much as 40 percent. ADNOC
will try to make up for the shortfall by increasing
production of the higher grade Murban crude from other,
unspecified fields. A Western oil executive confirmed to
Econoff that the scheduled maintenance includes renovations
and upgrades that had been delayed earlier this year
because of the war in Iraq. ADNOC deferred work that could
have affected the production of any one field, and stood
ready to ramp up production to offset shortages caused by
the loss in Iraqi exports.
3. (U) Current production from those two fields is
estimated at about 420,000 barrels per day (bpd). The Abu
Dhabi Marine Operating Company (ADMA-OPCO) quarterly
bulletin states that current production in the Zakum field
stands at 220,000 bpd and Umm Shaif produces about 200,000
bpd. Umm Shaif also has become a major gas producer for
the UAE since the completion of the Umm Shaif Gas
Development Project in 1994.
4. (C) Comment: Both the Zakum and Umm Shaif fields play a
major role in the UAE's total oil production and oil
exports -- Zakum alone has 321 oil and gas wells. Although
the Western oil exec said that Japan and India are the two
major oil importers of the lower grade Zakum and Umm Shaif
crude, the announcement nonetheless will put upward
pressure on oil prices worldwide. The news comes during a
week when oil prices have spiked to their highest levels
since before the onset of hostilities in Iraq. End
comment.
Albright