Adnoc begins output at new block off Abu Dhabi

Wam

Abu Dhabi state oil company Adnoc has commenced crude oil production from its Belbazem offshore block to achieve its strategy of producing five million barrels per day (bpd) by 2027.

The block is operated by Al Yasat Petroleum, a joint venture between Adnoc and China National Petroleum Corporation (CNPC), the UAE state-owned Wam news agency reported.

The production capacity at the Belbazem block is set to be progressively ramped up to 45,000 bpd of light crude and 27 million standard cubic feet per day of associated gas.

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Located 120 km northwest of Abu Dhabi city, the block consists of three fields: Belbazem, Umm Al Salsal and Umm Al Dholou.

In November 2022, the Adnoc board approved plans to bring forward the company’s five million bpd oil production capacity expansion to 2027 from a previous target of 2030.

Additionally, the board approved the five-year business plan and capital expenditure of AED550 billion ($150 billion) for 2023-2027 to enable the accelerated growth strategy.

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Last July, the oil giant brought forward its deadline to reach net-zero carbon emissions by five years to 2045, citing its “industry-leading” progress on targets to date as the reason for the change. In addition, it set a target of eliminating methane emissions from its activities by 2030.

Earlier in January, Adnoc said it would allocate $23 billion for decarbonisation and lower-carbon projects, up from a previous target of $15 billion.

The Abu Dhabi announcement comes as the secretary general of Opec this week warned the global oil and gas industry needs trillions of dollars in investment to sustain stable supply and meet growing energy demand.

Haitham Al Ghais said this week that the upstream sector needed more than $11 trillion, the downstream sector would need just under $2 trillion, and the midstream sector would need over $1 trillion to be injected by 2045.

“Allocating more investments in the oil industry will contribute to promoting the sustainability of the global energy sector, securing sufficient and reliable supplies for the world as a whole, and ensuring secure supplies for future generations,” he said.