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Friday, October 24, 2008

Occidental to invest half billion in Gulf oil fields

ABU DHABI — A U.S. energy major plans to invest $500 million in development in the United Arab Emirates.

Occidental Petroleum said it would invest $500 million by 2012 to appraise and develop two energy fields in the UAE. The crude oil and natural gas fields were identified as Jarn Yaphour and Ramhan, slated for development in cooperation with the state-owned Abu Dhabi National Oil Co., Middle East Newsline reported

"This is an important step in the implementation of our growth strategy and in our relationship with the emirate of Abu Dhabi," Occidental chairman Ray Irani said. "The development of these two fields provides an exciting opportunity to create value for the people of Abu Dhabi and for our stockholders."

Executives said Occidental would operate both fields and maintain a 100 percent interest. They said the onshore Jarn Yaphour field would be developed immediately with initial production of 10,000 barrels of oil equivalent expected in early 2009. Ramhan production was expected to begin around 2011.

Also In This Edition

Meanwhile, Kuwait was not expected to overcome parliamentary opposition to major energy projects directed by foreign companies.

Analysts have asserted that parliament was likely to continue to demand major revisions in proposed contracts with Western contractors for the development of northern oil fields. They said the opposition would torpedo the sheikdom's plans to increase oil production to four million barrels per day over the next two years.

A leading analyst, David Kirsch, manager of market intelligence at Washington-based consultancy PFC Energy, said Kuwait would be unable to significantly bolster its current output of 2.8 million barrels per day over the next decade. Project Kuwait, value at $8.5 billion, has undergone significant delays.

In 2007, Kuwait replaced its oil minister amid parliamentary opposition. Parliament has also demanded that the government provide actual figures for energy output.



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