US embassy cable - 03ABUDHABI3721

Disclaimer: This site has been first put up 15 years ago. Since then I would probably do a couple things differently, but because I've noticed this site had been linked from news outlets, PhD theses and peer rewieved papers and because I really hate the concept of "digital dark age" I've decided to put it back up. There's no chance it can produce any harm now.

UAE MAY CUT OIL PRODUCTION LATER THIS YEAR

Identifier: 03ABUDHABI3721
Wikileaks: View 03ABUDHABI3721 at Wikileaks.org
Origin: Embassy Abu Dhabi
Created: 2003-08-12 13:30:00
Classification: CONFIDENTIAL
Tags: EPET PGOV BEXP ENRG ECON EINV TC
Redacted: This cable was not redacted by Wikileaks.
null
Diana T Fritz  03/21/2007 11:34:59 AM  From  DB/Inbox:  Search Results

Cable 
Text:                                                                      
                                                                           
      
CONFIDENTIAL

SIPDIS
TELEGRAM                                          August 12, 2003


To:       No Action Addressee                                    

Action:   Unknown                                                

From:     AMEMBASSY ABU DHABI (ABU DHABI 3721 - ROUTINE)         

TAGS:     EPET, PGOV, BEXP, ENRG, ECON, EINV                     

Captions: None                                                   

Subject:  UAE MAY CUT OIL PRODUCTION LATER THIS YEAR             

Ref:      None                                                   
_________________________________________________________________
C O N F I D E N T I A L        ABU DHABI 03721

SIPDIS
CXABU:
    ACTION: ECON 
    INFO:   AMB DCM POL P/M 
Laser1:
    INFO:   FCS 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: CDA: RALBRIGHT
DRAFTED: ECON:CCRUMPLER
CLEARED: ECON: GRANA

VZCZCADI268
RR RUEHC RUEHHH RUEHDE RUCPDOC RHEBAAA
DE RUEHAD #3721 2241330
ZNY CCCCC ZZH
R 121330Z AUG 03
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 1257
INFO RUEHHH/OPEC COLLECTIVE
RUEHDE/AMCONSUL DUBAI 3335
RUCPDOC/USDOC WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
C O N F I D E N T I A L ABU DHABI 003721 
 
SIPDIS 
 
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA 
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO 
USDOE FOR OFFICE OF THE SECRETARY - RHONDA HUDOME 
USDOC FOR 1000/OC/ 
USDOC FOR 4520/ITA/IEP/ONE 
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI 
4500/ITA/MAC/DAS/WILLIAMSON 
3131/CS/OIO/ANESA 
 
E.O. 12958: DECL 08/12/08 
TAGS: EPET, PGOV, BEXP, ENRG, ECON, EINV, TC 
SUBJECT:  UAE MAY CUT OIL PRODUCTION LATER THIS YEAR 
 
 
1.  (U) Classified by Charge d'Affaires, a.i., Richard A. 
Albright, for reasons 1.5 (B) and (D). 
 
2.  (C) The Abu Dhabi National Oil Company (ADNOC) 
acknowledged publicly on August 10 that it will cut oil 
production in the last quarter of 2003 to undertake major 
repair work in the Lower Zakum and Umm Shaif offshore oil 
fields.  ADNOC analysts say that production from those two 
fields could be reduced by as much as 40 percent.  ADNOC 
will try to make up for the shortfall by increasing 
production of the higher grade Murban crude from other, 
unspecified fields.  A Western oil executive confirmed to 
Econoff that the scheduled maintenance includes renovations 
and upgrades that had been delayed earlier this year 
because of the war in Iraq.  ADNOC deferred work that could 
have affected the production of any one field, and stood 
ready to ramp up production to offset shortages caused by 
the loss in Iraqi exports. 
 
3.  (U) Current production from those two fields is 
estimated at about 420,000 barrels per day (bpd). The Abu 
Dhabi Marine Operating Company (ADMA-OPCO) quarterly 
bulletin states that current production in the Zakum field 
stands at 220,000 bpd and Umm Shaif produces about 200,000 
bpd.  Umm Shaif also has become a major gas producer for 
the UAE since the completion of the Umm Shaif Gas 
Development Project in 1994. 
 
4.  (C) Comment: Both the Zakum and Umm Shaif fields play a 
major role in the UAE's total oil production and oil 
exports -- Zakum alone has 321 oil and gas wells.  Although 
the Western oil exec said that Japan and India are the two 
major oil importers of the lower grade Zakum and Umm Shaif 
crude, the announcement nonetheless will put upward 
pressure on oil prices worldwide.  The news comes during a 
week when oil prices have spiked to their highest levels 
since before the onset of hostilities in Iraq.  End 
comment. 
 
Albright 

Latest source of this page is cablebrowser-2, released 2011-10-04