Abu Dhabi to pump average 3.1 mil b/d oil in 2022: S&P Global Ratings

UAE's oil-rich emirate of Abu Dhabi is forecast to pump on average 3.1 million b/d in 2022, S&P Global Ratings said in a May 30 report, as OPEC+ members continue to relax curbs on crude production initiated in 2020 at the height of the pandemic.

"We expect Abu Dhabi's oil production to increase on an annual basis as OPEC+ quotas are lifted and capacity increases to 5 million barrels per day by 2030 from about 4 million bpd," S&P Global Ratings said. "We expect oil production to average 3.1 bpd in 2022, reaching about 3.4 million bpd by 2025."

The UAE, OPEC's third biggest producer, pumped 3.01 million b/d in April, according to the latest Platts survey by S&P Global Commodity Insights.

The OPEC+ alliance implemented historic output cuts in 2020 amid a slowdown in oil demand. It is currently gradually unwinding those curbs that partly helped lift crude prices to more than $100/b this year.

OPEC+ ministers are due to meet June 2 to set July production quotas.

Dated Brent reached $122.335/b on May 30, a 2.2% increase on the day, according to Platts assessments from S&P Global.

Ratings is projecting a 5.5% economic growth for Abu Dhabi in 2022, thanks to an uptick in oil production and higher crude prices. Hydrocarbon sector growth will soar 10% in 2022 and average 3% every year 2023-2025, it added. Abu Dhabi's GDP relies 50% on the oil sector.

"We expect economic growth to accelerate in 2022, largely due to increased oil production and higher oil prices, which indirectly support real GDP growth," Ratings said. "However, real GDP will only recover to 2019 levels by 2023."