July 22, 2008

UAE Energy Giant to Cut Oil Output for Maintenance

UAE energy giant to cut oil output for maintenance

ABU DHABI, July 21 (Xinhua) -- The Abu Dhabi National Oil Company (ADNOC), the energy giant of the United Arab Emirates (UAE) , may cut its oil output by up to 200,000 barrels per day for maintenance of a gas processing plant in October and November, local news website thenational.ae reported on Monday.

ADNOC will cut its oil output in the offshore oil fields of Lower Zakum and Umm Shaif for 40 days due to the expected closure of a gas processing plant on Das Island for maintenance, the report said.

The plant operated by a subsidiary of ADNOC processes gas produced along with oil from the nearby offshore fields.

Because of the gas facility maintenance program, oil output from Lower Zakum and Umm Shaif would have to be reduced by between 150,000 and 200,000 barrels per day to avoid the need to "flare" or burn the excess gas.

The total oil output of Lower Zakum and Umm Shaif is normally around 480,000 barrels per day.

Last November, ADNOC cut its oil output by 600,000 barrels per day due to the maintenance program at the offshore fields of Upper Zakum, Lower Zakum and Umm Shaif.

ADNOC, a fully government-owned company established in 1971, is one of the world's leading oil companies with huge reserves. It currently produces over 2.7 million barrels of oil per day, according to its website.

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