Austrian oil and gas exploration and production company OMV has commenced oil production from the Umm Lulu and Satah Al Razboot (SARB) offshore fields in Abu Dhabi, UAE.
The fields will have an initial capacity of 50,000 barrels per day (bpd), which will be further increased to 129,000 bpd by the end of the year and 215,000 bpd by 2023.
Of the initial production capacity, OMV will have 10,000 bpd net.
The net oil production to the company will increase to 25,800 bpd by the end of the year and then to 43,000 bpd by 2023.
In April this year, OMV signed an agreement with Adnoc to acquire a 20% stake in the offshore concession Abu Dhabi, comprising SARB and Umm Lulu, as well as the associated infrastructure, in a deal valued at $1.5bn. The agreement runs for a period of 40 years.
Both fields are located offshore in shallow waters. According to OMV, the early oil production at the Umm Lulu field commenced in the fourth quarter of 2016.
For the contract period, the company’s share of the reserves is estimated to be around 450 million barrels oil from the two main fields.
In addition, OMV has upside potential from the satellite fields Bin Nasher and Al Bateel.
Over the course of the concession period, the company is expected to invest capital expenditures of nearly $2bn.
During the first five years, the investment will be in the range of around $150m per annum.