The UAE is pushing up a target date for increased crude oil output by five years, according to Bloomberg. State-run producer ADNOC wants to produce 5 million barrels per day by 2025, up from a previously disclosed target of 2030. The UAE could target 6 million bpd by 2030 if the 2025 goal is successful. Loading Something is loading.
The United Arab Emirates is speeding up plans to increase crude oil output sooner than previously expected, according to a report from Bloomberg.
The country’s state-run oil major, Abu Dhabi National Oil Co., is now targeting 2025 to increase crude oil output to 5 million barrels per day, as elevated prices give major producers incentive to rush flows onto the market. The UAE originally targeted 2030 to reach that level.
ADNOC produces the lion share of the UAE’s oil, and the country is the third-largest producer in OPEC behind Saudi Arabia and Iraq.
The increase remains ambitious as UAE produced 3.4 million bpd in August, and will likely add to costs that were already projected to be billions of dollars. Sources cited by Bloomberg say the original plan was to move up the target date to 2027 from 2030 before agreeing on 2025.
The UAE is asking international partners in the country’s oilfields to increase capacity by roughly 10%, and sources told Bloomberg that the target of 5 million bpd could tick up to 6 million bpd by 2030 if the 2025 goal is successful.
The push to increase output follows months of energy market volatility from Russia’s February invasion of Ukraine which sent Brent crude soaring past $130 per barrel. Crude oil has abated somewhat in recent months, with Brent hovering around $89 Monday.