Austria’s OMV said it has begun production at offshore Abu Dhabi’s Umm Lulu and SARB (Satah Al Razboot) fields, having signed a concession in the fields in April.
The fields shows “an initial capacity of 50,000 barrels per day (10,000 barrels per day net to OMV), which will increase to 129,000 barrels per day (25,800 barrels per day net to OMV) by the end of 2018 and 215,000 barrels per day (43,000 barrels per day net to OMV) by 2023, OMV said in a statement.
In April 2018 OMV, the international integrated oil and gas company based in Vienna, signed an agreement for the award of a 20 per cent stake in the offshore concession Abu Dhabi – SARB (with the satellite fields Bin Nasher and Al Bateel) and Umm Lulu as well as the associated infrastructure.
The agreed participation fee amounted to US$1.5 billion with a contract duration of 40 years.
The SARB field, 120 km away from Abu Dhabi, and the Umm Lulu field, about 30 km away from
Abu Dhabi, are both located offshore in shallow waters. The early production in Umm Lulu started in the fourth quarter of 2016.
OMV’s share of the reserves, for the period of the concession agreement, would amount to approximately 450 million barrels oil for the two main fields, with upside potentials from the satellite fields Bin Nasher and Al Bateel.
OMV said its capital expenditures over the contract term are estimated to amount to approximately $2 billion, with approximately $150 million to be spent per annum during the first five years.