OMV, the international integrated oil and gas company based in Vienna, Austria said that it has commenced production at Abu Dhabi’s offshore Umm Lulu and SARB (Satah Al Razboot) fields.

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, an OMV statement said.

In April 2018, OMV 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 $1.5 billion and the duration of the contract is 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’s capital expenditures over the contract term are estimated to amount to approximately $2 billion, thereof approximately $150 million will be spent per annum during the first five years. - TradeArabia News Service