UAE's ADNOC to expand Upper Zakum capacity to 1 million bpd

Abu Dhabi National Oil Company (ADNOC) on Tuesday said it has signed an agreement to increase production capacity at the Upper Zakum oil field to 1 million barrels per day by 2024.

ExxonMobil Abu Dhabi Offshore Petroleum Co. Ltd. and Japan’s INPEX Corporation (INPEX) signed the agreement with ADNOC on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

Under the agreement, ExxonMobil and INPEX have been granted a 10-year extension for the concession, which was due to expire on December 31, 2041, until December 31, 2051.

The Upper Zakum oil field, which currently produces about 600,000 barrels per day, is the second largest offshore oil field and the fourth largest oil field in the world.

ADNOC, INPEX and Exxon have been working on increasing capacity of the oil field since 2006, and have implemented an artificial island-based development combined with extended-reach drilling technology to increase recovery and minimize infrastructure, ADNOC said in a statement.