ABU DHABI // Abu Dhabi has awarded the first new oil and gas concession in about three decades to Occidental, the American oil company, to develop two small fields close to the capital. The concessions are relatively small with a combined expected output of 20,000 barrels per day at first, illustrating a new strategy of the emirate to exploit smaller reserves in the light of growing world oil demand and prices.
Occidental said in a statement it had signed a preliminary agreement with Abu Dhabi National Oil Company (Adnoc) to appraise and develop the Jarn Yaphour and Ramhan fields, with a 100 per cent interest. "The development of these two fields provides an exciting opportunity to create value for the people of Abu Dhabi and for our stockholders," said Ray Irani, chairman and chief executive officer of Occidental, which is based in Los Angeles.
An Adnoc spokesman was not immediately available for comment. Abu Dhabi pumps almost three million barrels of oil a day, making the UAE the world's eighth largest producer. Most is exploited under a handful of 70-year-old concessions with foreign partners that are due to expire within the next few years. The Jarn Yaphour and Ramhan fields used to lie within one of these concessions, but were relinquished.
Occidental said it aimed to invest $500 million (Dh1.83 billion) in the two fields over the next three or four years. It will start developing the Jarn Yaphour field immediately and expects to produce its first oil next year. tashby@thenational.ae