Abu Dhabi boosts reserves with unconventional oil
Abu Dhabi has boosted its estimated conventional oil reserves by 2bn bl to take its total to 107bn bls, the emirate's Supreme Petroleum Council (SPC) announced today. This is the second consecutive reserves increase in as many years.
It also added another 22bn bl of recoverable unconventional oil resources following a major onshore appraisal program by state-owned Adnoc covering 25,000 km2 in Abu Dhabi.
The reserve additions were confirmed by Houston-based independent petroleum consultants Ryder Scott, according to the SPC.
At 22 billion barrels, the newly discovered recoverable unconventional resource would be bigger than Abu Dhabi's existing major oil fields, the SPC said, and have production potential comparable to "the largest shale oil operations in North America".
The announcement followed a meeting of the SPC, Abu Dhabi's highest hydrocarbon policy and strategy body, which was chaired by the UAE's de facto ruler, Abu Dhabi's crown prince Mohammed bin Zayed al-Nahyan.
The additions come just one year after the SPC boosted its estimate of Abu Dhabi's oil reserves by 7 bn bl to 105bn bl. This lifted it from seventh to sixth position in global reserves ranking.
And further announcements on reserves could be on the way in the coming years if exploration work at blocks included in Abu Dhabi's second licensing round prove successful. The SPC is preparing to announce the winners of the upstream exploration licensing round, which was held in 2019. Two onshore and three offshore blocks were offered in that round, as well as unconventional oil and gas prospects for the first time.
"Based on the data available from detailed studies of the petroleum system and seismic surveys obtained from exploration and evaluation wells, it is estimated that the new areas within the second round of competitive bidding contain large resources estimated at several billions of barrels of oil and trillions of cubic feet of natural gas," the SPC said.
Adnoc aims to use discoveries made the licensing rounds to help sustain its long-term production capacity target of 5mn b/d by 2030. The emirate can currently produce as much as 4mn b/d.
Along with the reserves hike, the SPC also approved a 448 billion dirham ($122 billion) capital spending plan for Adnoc to help fund energy projects for the coming five years. Further details on the outlay were not provided however.
Related news posts
Green growth a focus for Azerbaijan: Cop 29 president
Green growth a focus for Azerbaijan: Cop 29 president
London, 14 March (Argus) — "Green growth is a priority for Azerbaijan", although the country will continue to deliver gas to customers, president-designate of the UN Cop 29 climate summit Mukhtar Babayev said at the Financial Times Climate Capital Live conference today. Azerbaijan is an oil and gas producer, and a member of the Opec+ alliance. Cop 29 is set to take place in Baku, Azerbaijan, on 11-22 November. "We will continue to deliver the gas to our customers", but at the same time will pursue a "green agenda", Babayev said. Azerbaijan plans to export "over 24bn m³" of gas in 2024, with half of planned deliveries this year earmarked for Europe, energy minister Parviz Shahbazov said earlier this year. Azerbaijan is a "vulnerable country" in terms of climate change, Babayev said, noting water shortages and land degradation. "Azerbaijan has already turned the economy to the green direction", he added. Azerbaijan's state-owned Socar in late December said that it would establish a unit, Socar Green, to focus on driving the country's renewable energy portfolio. The country has a goal to produce 30pc of its power needs from renewable sources by 2030. And Azerbaijan may "reconsider possibly" updating its nationally determined contribution (NDC) — or climate plan — according to Babayev. He emphasised that Cop 29 was a chance for all countries to announce "upgraded NDCs", although the next round of updates under the five-yearly cycle is not due until Cop 30, in 2025. Cop 30 will take place in Brazil. Azerbaijan under its current NDC has set a target to cut greenhouse gas (GHG) emissions by 40pc by 2050, from a baseline year of 1990, contingent to international financial support and technology transfer. Earlier this month, Azerbaijan joined the Global Methane Pledge group of countries that have promised to cut emissions of the greenhouse gas (GHG) by 30pc by 2030. "Climate finance is one of the priorities" for Cop 29, Babayev said. The Cop 29 team has "already started to negotiate with different financial institutes, countries… trying to prepare ourselves to start the negotiations on the text", he added. The topic of climate finance is likely to take centre stage at this year's Cop, as countries must decide on a new finance goal . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Turkey, Iraq officials meet to discuss security, energy
Turkey, Iraq officials meet to discuss security, energy
Dubai, 14 March (Argus) — Senior Turkish officials are visiting the Iraqi capital today for security consultations and discussions over energy co-operation, the Turkish ministry of foreign affairs said. The visit precedes a trip by Turkish president Recep Tayyep Erdogan to Iraq before the end of April. Foreign minister Hakan Fidan, defence minister Yasar Guler, and intelligence chief Ibrahim Kalin will hold talks with Iraqi counterparts, hosted by Iraq's minister of foreign affairs Fuad Hussein. "During the meeting, various topics on our bilateral agenda, particularly co-operation in the fields of combatting terrorism, security as well as military co-operation will be discussed thoroughly," Turkey's foreign ministry said. Relations between Baghdad and Ankara have strained in recent years, specifically as Turkey pursued a more aggressive military strategy against Kurdish separatist group PKK — which Turkey, the US and EU view as a terrorist organisation. "Developing a common understanding in counterterrorism and concrete steps that can be taken in that regard will be on the table," a Turkish foreign ministry spokesperson Oncu Keceli said on 13 March. "The PKK being defined as a common security threat by Iraqi authorities is a sign that the desire to battle the PKK is developing in Iraq and we welcome this." Keceli, whose comments were carried by Turkish state-owned news agency Anadolu, added that there will be talks to develop natural gas resources in Iraq and ship them to international markets. He also noted that the resumption of oil flows from the Iraq-Turkey pipeline would be discussed during the meetings. Separately, Turkey's deputy foreign minister Ahmet Yıldız confirmed Erdogan's visit, which is meant to discuss energy co-operation among other issues, and comes after the one-year anniversary of the halt in around 470,000 b/d of Iraq's crude exports. Erdogan's last visit to Baghdad took place in 2012 when he served as prime minister. The ruling by the Paris-based International Chamber of Commerce in March last year further complicated the situation, because it found Ankara had breached a 1973 agreement with Iraq by allowing crude marketed by the KRG to be exported without Baghdad's consent. Turkey is also holding out on paying $1.47bn that the court said it owed Baghdad in compensation for breaching the pipeline deal. Turkey has said it is ready to resume exports through its Mediterranean port of Ceyhan. But disagreements between Baghdad and Erbil specifically over the contracts of the international oil companies operating in Kurdistan, Iraq, have prevented a restart. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
IEA ups demand growth forecast on bunkers, US petchems
IEA ups demand growth forecast on bunkers, US petchems
London, 14 March (Argus) — The IEA has increased its global oil demand forecast by 110,000 b/d in 2024, citing an improved outlook in the US and higher bunker fuel use. In its latest Oil Market Report (OMR), the Paris-based agency sees global oil demand rising by 1.34mn b/d to 103.18mn b/d this year — a significant slowdown on last year's growth of 2.28mn b/d. The IEA's latest demand growth forecast for this year is the highest since it released its first projection for 2024 last July. At that time, it was guiding for growth of 1.15mn b/d for 2024. Still, the IEA's forecast remains substantially lower than that of Opec, which anticipates an increase of 2.25mn b/d to 104.4mn b/d. The IEA gives two reasons for its upgrade — surging ethane demand for the US petrochemicals sector, and increased bunker fuel demand as ships that would have typically sailed through the Red Sea choose the safer-but-longer route around Africa to avoid the threat posed by Yemen's Houthi militants. Some ships also appear to be ' fast steaming ' to mitigate the impact of longer journeys, which is also adding to demand. "With shipowners bypassing the Red Sea, longer routes around the Cape of Good Hope combined with faster speeds to sharply increase bunkering demand in [Singapore], and to a lesser extent in smaller southern African refuelling ports," the IEA said. On US demand, the IEA said this suggests "the shift towards Chinese production in petrochemical markets could be losing momentum. The most cost-efficient petrochemical producers may now have the wherewithal to better compete with new Chinese plants." It sees Chinese consumption growth of 620,000 b/d in 2024, lower by 80,000 b/d than in the previous OMR. On global oil supply, the IEA sharply revised down its 2024 growth estimate by 920,000 b/d to 800,000 b/d, following the decision by several Opec+ members to extend their latest voluntary supply cuts by three months to the end of June. The IEA's latest supply forecast assumes the Opec+ voluntary cuts remain in place until the end of 2024. This shifts its balance for this year from a surplus of around 800,000 b/d to a deficit of 280,000 b/d. Opec+ has yet to decide on its output policy for the second half of the year and may do so at a ministerial meeting scheduled for 1 June in Vienna. Global observed oil stocks surged by 47.1mn bl in February, reversing a steep draw in January, the IEA said. This was due to a big increase in offshore stocks as seaborne exports "recorded an all-time high" and Red Sea shipping disruptions tied up significant amounts of oil on water, it said. While oil on water rose by 84.8mn bl in February according to preliminary data, on-land stocks fell for a seventh consecutive month, the IEA said. By Aydin Calik Global oil demand/supply balance mn b/d Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Cop 28 text to inform upcoming climate plans: Denmark
Cop 28 text to inform upcoming climate plans: Denmark
Edinburgh, 13 March (Argus) — Denmark's climate minister Dan Jorgensen told FT climate summit delegates that there is a risk that decisions taken during the UN Cop 28 climate summit in Dubai could be treated as a menu, but warned that they will have to be at the heart of countries' new climate plans due in 2025. Cop 28 delivered at the end of last year an energy package centred on transitioning away from fossil fuels and tripling renewable capacity by 2030, which was hailed as an "historic" consensus. Saudi energy minister Prince Abdulaziz bin Salman said in January during the Future Minerals Forum that the eight points under the energy section of the text were "choices", calling it an "a la carte menu". The Cop 28 text was the conclusion of the UN Framework Convention on Climate Change's (UNFCCC) first global stocktake — a five-yearly undertaking measuring progress against the goals of the Paris Agreement. Prince Abdulaziz had said that the menu, referring to the Cop 28 text, "was something we were willing to agree to because this is something we are doing", including transitioning away from fossil fuels domestically. But he also said that the extra crude from lower domestic consumption would be exported, asking developed countries that are pushing to phase down fossil fuels production to take the lead. Jorgensen said today that countries' upcoming Nationally Determined Contributions (NDCs) — emission reduction plans — "have to be informed by the decisions in Dubai and will be measured on their meaning". He said that Cop decisions often face criticism, citing the Paris Agreement which was described as "not being legally binding enough" or weak, as only voluntary. "But I don't think many people would argue today that the Paris agreement hasn't had an influence. It sets the norm," Jorgensen added. The Paris accord seeks to limit global warming to "well below" 2°C above the pre-industrial average and preferably to 1.5°C. Denmark, the largest oil producer in the EU, decided to end all new oil and gas extraction in the country by 2050, although the country faced some criticism after authorising a gas output increase from already licensed fields to curb Copenhagen's reliance on Russian supplies . Asked whether countries such as the UAE, China and Saudi Arabia, which are not considered as developed countries under the UNFCCC framework should contribute to the new climate finance goal set to replace the $100bn/yr by 2020 commitment, Jorgensen said: "If we look at the biggest emitters in the world many of them are categorised as developing countries and they are also going through a phase of steep economic growth, so it would be fair if they were to contribute". He pointed out that the UAE was the first contributor of the new loss and damage fund — to tackle the unavoidable and irreversible effects of climate change — created during Cop 28. "That was a completely new thing and hopefully it can pave the way for more of those sources of donations," he said. The new climate finance goal will be under discussion at the next UN climate talks, which will take place in Azerbaijan in November. Cop 29 president-designate Mukhtar Babayev said previously that he is seeking quantifiable targets from developed countries . By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.