Working with Global Partners
The UAE is the rare country within the region that features a thriving private-sector for oil and gas. Which incorporates many partnerships with US companies. The UAE features a history of welcoming private-sector investment into its upstream oil and gas exploration and production sector. Abu Dhabi was the sole OPEC member to not nationalize the holdings of foreign investors during the wave of nationalization that swept the worldwide oil and gas industry within the mid-1970s. It continues to profit from high levels of personal sector investment. Occidental Petroleum of the US and Total of France each have a 24.5 percent equity stake within the Dolphin gas pipeline project.
Securing Oil Shipments
The UAE may be a responsible partner in protecting global energy supplies. In an attempt to reinforce supply security. Gulf governments are studying the event of oil pipelines that might bypass the Strait of Hormuz. About two-fifths of the world’s traded oil is currently shipped by tanker through this 34-mile-wide passage. Once built, the pipelines could move the maximum amount as 6.5 million barrels of oil per day or about 40 percent of the quantity currently shipped through the Strait. One such pipeline referred to as the Abu Dhabi Petroleum Pipeline (ADCOP), links the Habshan oil field in Abu Dhabi with the port of Fujairah and commenced. Its first shipment in July 2012. The pipeline allows the UAE to pump about 60 percent of its crude exports to Fujairah Port on the Gulf of Oman, thus avoiding the strategic shipping chokepoint at the Strait of Hormuz.
In the first major cross-border energy deal between Gulf countries, the UAE is importing gas by pipeline from Qatar. This pipeline, the Dolphin Project, frees Abu Dhabi’s gas supply for petroleum recovery and export. The project began delivering gas to power companies. Within the summer of 2007 and therefore the UAE receives two billion cubic feet of gas per day.