Abu Dhabi Seeking to Double Bou Hasir Oil Field Output

ADNOC is seeking to double oil production at the Bou Hasir field. (AP)
ADNOC is seeking to double oil production at the Bou Hasir field. (AP)
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Abu Dhabi Seeking to Double Bou Hasir Oil Field Output

ADNOC is seeking to double oil production at the Bou Hasir field. (AP)
ADNOC is seeking to double oil production at the Bou Hasir field. (AP)

The Abu Dhabi National Oil Company (ADNOC) is seeking to double oil production at the Bou Hasir field from 8,000 bpd to 16,000 bpd by developing a contract worth about AED 633 million (USD172 million).

The contract includes engineering, procurement, manufacturing, transportation and installation of a new platform, the laying of pipelines to transport oil and water, a 3km sea cable and a 16km cable on the island of Zirku, said National Petroleum Construction Company (NPCC) CEO Ahmed Salem Al Dhaheri.

Construction and modification of new facilities on Das Island and Zirku Island among other works are expected to be completed by the end of 2019, he added.

“We are proud of this confidence, which reflects the company’s advanced technical level at the local, regional and global levels,” said Dhaheri.

He stressed that specialized departments and teams of company experts will start work, in accordance with the requirements and expectations of the client in full, ensuring the project is completed on time, while committing to top standards of quality and safety.

Dhaheri added that the company is proud of its qualified, trained and experienced national cadres, who enabled NPCC to increase its share in local, regional and international markets and to enhance its competitive level both locally and globally.

NPCC is one of the largest regional companies in the field of construction of oil and gas fields.

Established in 1973 by the government of Abu Dhabi, the company is 70 percent state-owned. The company also owns the largest offshore oil and gas fleet in the Middle East, South East Asia and North Africa region.



Gold Rises on Increasing Fed Rate-cut Bets, Weaker Dollar

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
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Gold Rises on Increasing Fed Rate-cut Bets, Weaker Dollar

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo

Gold rose on Wednesday as expectations of a US Federal Reserve interest rate cut in September gained traction following mild inflation data, while a weaker dollar bolstered demand.

Spot gold gained 0.6% to $3,363.61 per ounce by 1026 GMT. US gold futures for December delivery rose 0.5% to $3,414.10.

"Market participants are starting to debate if the Fed will do a 50 basis point cut at its September meeting following the comments from US Treasury Secretary Bessent yesterday, with a focus on incoming weaker US economic data supporting that," said UBS commodity analyst Giovanni Staunovo, Reuters reported.

Markets are pricing in a more than 96% chance of a Fed rate cut next month, after July's mild inflation bump signalled limited impact from US import tariffs on consumer prices, with at least one additional reduction anticipated by year-end.

Gold, a non-yielding asset often viewed as a safe haven during times of economic or geopolitical uncertainties, typically benefits from a low-interest-rate environment.

The dollar index hit a two-week low, making greenback-priced bullion more affordable for overseas buyers.

Europe and Ukrainian leaders will speak with US President Donald Trump at a virtual meeting on Wednesday ahead of his summit with Russian President Vladimir Putin, as they try to drive home the perils of selling out Kyiv's interests in pursuit of a ceasefire.

"Don't expect those talks to meaningfully influence the gold market, (they) might trigger some short-term volatility. Near-term prices are likely to move sideways, until incoming US economic (data) starts to support a faster (Fed) rate cut cycle," Staunovo said.

Meanwhile, the US and China extended their tariff truce by another 90 days, averting triple-digit duties on each other's goods.

Spot silver rose 1.7% to $38.53 per ounce, platinum was up 0.7% at $1,345.89 and palladium gained 0.5% to $1,135.45.