Abu Dhabi is aiming to ramp up oil production capacity to 3 million barrels per day by the end of the year to bring "comfort to the market," according to Mohammed Al Hamli, the oil minister.
"As major responsible producer, we build the capacity to ensure that in case of a crisis, the world needs more oil, we have it," Mr Al Hamli said on the sidelines of an energy conference in Dubai.
Abu Dhabi is adding 200,000 bpd to its current pumping capacity of 2.8 million, the first step in a five-year expansion to 3.5 million bpd. In August, it pumped 2.6 bpd.
The capacity build-up comes as additional European sanctions on Iran's oil industry come into force and fears grow that the Syrian civil war is spilling into Lebanon, threatening regional security.
"It's very important for the UAE that at least we are assuring and telling our customers that we are building up capacity and whenever there is a need for more oil to go onto the market, we'll be happy to supply," Mr Al Hamli said.
The price of Brent crude, the European benchmark, inched up to US$111.39 a barrel yesterday.
The capacity increase is being driven by work at the Zakum oilfield, one of the world's largest offshore crude deposits.
"This is a gradual buildup, and it takes a long time to build up capacity," said Mr Al Hamli.
Abu Dhabi's ability to reach its final target of 3.5 million bpd hinges on how it selects foreign partners in the next few years.
A concession signed before the Second World War for the emirate's biggest onshore fields will expire in 2014. Earlier this year, Abu Dhabi received pre-qualification material from more than 10 invited companies for the set of ageing fields, which pump 1.4 million bpd and will require specialised technology to maintain.
Undeveloped fields are also on the table. China National Petroleum Corporation hopes to launch negotiations soon with Abu Dhabi for a set of seven exploration blocks.
The capacity increase is being driven by work at the Zakum oilfield, one of the world's largest offshore crude deposits.
