Oxy signs up for Abu Dhabi's Jarn Yaphour, Ramhan fields
Oxy has signed a preliminary agreement with Abu Dhabi National Oil Co. to appraise and develop the Jarn Yaphour and Ramhan oil and gas fields in Abu Dhabi.
Oil Diplomacy Editor
LOS ANGELES, Oct. 10 -- Occidental Petroleum Corp. has signed a preliminary agreement with Abu Dhabi National Oil Co. (ADNOC) to appraise and develop the Jarn Yaphour and Ramhan oil and gas fields in Abu Dhabi.
"The development of these two fields provides an exciting opportunity to create value for the people of Abu Dhabi and for our stockholders," said Ray Irani, Oxy chairman and chief executive officer. Oxy will operate both fields and hold a 100% interest in the newly created concessions.
Development activities at Jarn Yaphour field, which lies onshore near the capital city of Abu Dhabi, will start immediately. First production from the field, which is expected in 2009, will see 10,000 boe/d of gross production from the initial development.
The Ramhan discovery, which lies in very shallow water near the Abu Dhabi refinery, was tested in 1992 and flowed at a combined rate of 1,750 b/d of oil and 14 MMcfd of gas from one well.
Appraisal activities will commence immediately and, if technically and commercially successful, first production from the Ramhan initial development could begin as early as 2011 in the range of 10,000 boe/d.
Oxy said its total capital investment in both development projects is expected to be $500 million over the next 3-4 years.
"In addition to the initial field developments, this investment will include further field appraisal activities to determine the full upside potential of each area," Oxy said.
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