Business | Oil & Gas

Dubai confirms offshore oil discovery

The latest discovery is expected to "provide a new source of income and enhance the overall development of Dubai".

  • By Nadia Saleem, Staff Reporter
  • live coveragePublished: 19:45 February 4, 2010
  • Reader comments (32)

  • The oil field is reportedly east of the existing Rashid field (Picture used for illustrative purposes only)
  • Image Credit: Gulf News Archive
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Dubai: A new oil field off the shore of Dubai was discovered east of the Rashid oil field, the Dubai government announced this morning.

Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Department of Oil Affairs and Chairman of the Supreme Council for Energy, will head the development of the new marine oil field discovered east of Rashid oil field in Dubai, a government statement said on Thursday.
 
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai asked Shaikh Ahmad to “undertake all acts of exploration and prospecting of the field discovered,” in a statement from the Dubai media office.

He will also be involved in conducting necessary research to ascertain the size of the crude oil deposit and the production capacity in the short and long-term.

Shaikh Mohammad also asked him to confirm the economic benefits of the field as soon as possible.

The oil is expected to “provide a new source of income and enhance the overall development of Dubai,” Shaikh Mohammad said.

The announcement was made by Shaikh Mohammad just before the meeting of the Cabinet in Liwa, Western Region, reported the official news agency WAM.

Shaikh Ahmad was appointed the head of the two energy committees late last year.

Oil represents less than 5 per cent to Dubai’s $54 billion gross domestic products.

Dubai was expected to run out of oil in a few years time. However, the new discovery will change that.

Local media on Thursday reported quoting sources as saying the new oil field is “promising” in terms of production capacity.

Because of limited resources, Dubai has over the years followed a strategy that limited its dependency on the oil sector. This enabled the emirate to have an economy today that is almost entirely dependent on non-oil production.

Dubai’s first oil field was discovered in 1966 and the first production was from Fat’h oilfield in 1969.

A second oil field, Falah, was discovered in 1972 and production started in 1978.

Two other oilfields – Rashid and Margham – were discovered in 1973 and 1982 respectively.

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  1. Gulf News may edit comments for length and clarity, but the tone of the message will not be changed. All comments go through a review process and some may not be published. Make sure your message isn't abusive, defamatory or offensive. Comments will only be accepted if all fields are filled out correctly.
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  1. Added 18:09 February 4, 2010

    Great news to all residents of Dubai, indeed! As it boosts their morale and gives hope for those who have spent all their lives working so hard and unlikely to surrender due to global crisis. It will be for the benefit of whole population of Dubai till the next generation to come.

    Anonymous, Dubai, United Arab Emirates

  2. Added 18:02 February 4, 2010

    Its a gift from the God. We want to see Dubai always ahead of the world. All the very best to Dubai and its leaders.

    Mohammad Faheem. Av, Abu Dhabi, United Arab Emirates

  3. Added 17:52 February 4, 2010

    By all means, get to work immediately so you can get the field ready and start pumping the oil! If this is as promising as it is said, and I truly hope it will be more than promising...more than a massive field, then hopefully in the next few years, a lovely source of income will come about so that we become independent. I congratulate the leaders of Dubai for their vision. I hope the haters will shut up in the near future.

    Ned, Dubai, United Arab Emirates

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