UAE’s plans to boost production capacity at its Upper Zakum crude oilfield was expected to cost up to $12 billion, an official from the Zakum Development Co (Zadco) said.

Output capacity increase at Upper Zakum is set to be completed by end-2015, Salah al-Bufalah, projects manager at Zadco told Reuters on the sidelines of a Meed conference.

Upper Zakum output accounts for about a third of the UAE's planned boost to total capacity of 3.5 million barrels per day (bpd) in 2018 from around 2.8 million bpd, Al Bufalah added.

'We are increasing production from Upper Zakum by 40 per cent ...it will be executed in two phases, the early production and the build up scheme,' he said.

Exxon Mobil Corp has a 28 per cent stake in the concession holder for the Upper Zakum field. Initial plans were to boost production to 750,000 bpd by 2010.

The Abu Dhabi National Oil Company (Adnoc) owns 60 per cent of Zadco, while Japan's Inpex owns the remaining 12 per cent.

The first phase, which will involve reaching the partial production target will be completed by mid-2013, and the build-up scheme or the commissioning phase is expected to be at the end of 2015, Bufalah said.

The field was currently pumping at 500,000 bpd, with no scheduled maintenance planned over the next two years, he said.

'Capacity at the project is called '750 K', will be hiked to produce 750,000 barrels per day,' he said.

'The cost of the overall scheme including drilling and others is around $10-$12 billion...this will be the capacity but the production is as per the UAE's quota.'

French oil engineering group Technip is currently conducting the engineering work which will be completed by the end of 2010, he said, adding: 'The engineering phase will be completed by the end of 2010'.

Zadco operates three oil fields -- Upper Zakum, Satah and Umm Al Dalkh. The Satah oilfield is being redeveloped as part of Zadco's expansion plans. It will be tendered as an engineering, procurement and construction contract early next year and commissioning is set for 2013, Bufalah said.

The UAE is the world's third-largest oil exporter. – Reuters