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.
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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.