Abu Dhabi makes 'significant' oil, gas find holding flagship Murban crude

Abu Dhabi has made a new crude oil, condensate, and natural gas discovery holding up to 1 billion barrels of oil equivalent in its major Block 4 onshore concession operated by Japan's INPEX, Abu Dhabi National Oil Co said Dec. 14.

When developed, the new discovery will boost reserves of Abu Dhabi's flagship Murban crude that underpins a new futures contract.

Based on a provisional recovery rate of 40% for crude and 70% for natural gas and condensate, the find could hold recoverable reserves of about 480 million barrels, an INPEX spokesperson told S&P Global Platts.

"The discovery comprises substantial Murban oil resources and represents the first find from this concession area as well as from a new geological formation," ADNOC said in a tweet.

It said it plans to appraise and further quantify the resources as well as to explore the "promising potential in and around Onshore Block 4."

The INPEX spokesperson said the company intends to confirm the recoverable reserves by around 2025 as a result of appraisal drilling works with an eye to commercial production.

INPEX was awarded as the Onshore Block 4's operator after participating in ADNOC's first-ever block bid round in the emirate in 2018. The block is located in a coastal area in the central part of the emirate of Abu Dhabi and covers a surface area of approximately 6,116 km2.

Murban crude

ADNOC has been partnering with international oil companies to help boost its oil production capacity, which will rise to 5 million b/d by 2030 from about 4 million b/d now. Nearly half of the new production capacity is expected to come from Murban, ADNOC's biggest crude by volume.

About half of ADNOC's current oil production capacity comes from Murban, a lighter and sweeter grade than ADNOC's other crudes. Murban has an API of 40.20 and a sulfur content of 0.79%. ADNOC's three others are Upper Zakum, Das and Umm Lulu.

Murban also underpins the futures contract on ICE Futures Abu Dhabi, the exchange that was launched in March in partnership with the Intercontinental Exchange.

Murban is also the main Abu Dhabi grade processed at ADNOC's Ruwais refinery, which is undergoing an upgrade to allow it to process a wider range of crudes. The crude flexibility project is expected to finish in 2022 and would free up Murban for export.

INPEX footprint

Japan's largest upstream company INPEX produced 573,000 boe/d in 2020, of which 331,000 b/d, or 58%, consisted of crude oil, condensate and LPG, with the remaining 42% comprising natural gas of 242,000 boe/d.

Abu Dhabi accounted for almost all of INPEX's output in the Middle East and Africa sector with 226,000 b/d, or 39%, of its 2020 total net production.

INPEX also has a 5% stake in the Abu Dhabi Onshore Concession, which reached a production capacity of 2 million b/d, with ADNOC and its partners currently evaluating further production enhancement plans.

INPEX also has a 10% stake in Lower Zakum oil field offshore Abu Dhabi, a 12% stake in the Upper Zakum oil field, and a 40% stake in Satah and Umm Al-Dalkh oil fields.

The Upper Zakum oil field targets a production capacity of 1 million b/d by 2024.

The Lower Zakum oil field targets a production capacity of 450,000 b/d but it does not disclose a timeline, and the Satah and Umm Al-Dalkh oil fields have targeted a combined production capacity of 45,000 b/d with an undisclosed schedule.

Adds background on Murban crude