Dubai discovers new offshore oilfield

RELATED NEWS Dubai`s Emirates sees no funding issues, solid `09 Dubai`s Nakheel: The World islands not sinking Dubai World asset sale nears, debt talks plod Dubai developer ETA to focus on India projects DP World mulls A$1bln IPO of Australian unit

The emirate of Dubai has discovered an offshore oilfield, the office of Dubai's ruler said in a statement on Thursday.

Small oil producer Dubai was evaluating the size of the field and potential production, the statement said. The ruler's office was unable to provide further information.

The discovery is timely for the cash-strapped emirate, which is restructuring USD 22 billion of debt of state-owned conglomerate Dubai World.

"(It would) give a strong impetus to all sectors of the local economy and provide a new source of income enhancing the comprehensive development of Dubai," UAE state news agency WAM said in a statement.

Dubai's crude has an influence on global oil markets that belies its limited output, as it is used as a pricing benchmark for more than 10 million barrels per day of crude heading to Asia from the Middle East.

The emirate pumps only a fraction of supply from the United Arab Emirates, the world's third largest oil exporter with output of around 2.3 million bpd. The emirate of Abu Dhabi produces most of the UAE's oil and holds over 90 percent of its reserves.

Oil output from Dubai's mature fields is in decline, and is estimated at around 50,000 to 70,000 bpd, according to trade estimates. Dubai does not provide official oil production data. Output peaked in 1991 at over 400,000 bpd.

The new field was discovered to the east of the producing Rashid oilfield, the ruler's office said. The field is one of four main producing fields. The others are Fateh, southwest Fateh and Falah.

Daily newspaper Al Bayan on Thursday reported industry sources as saying that the field was "promising".

The UAE is a seven-member federation including the Gulf trade and tourism hub of Dubai. Over 90 percent of the UAE's oil is located in the capital Abu Dhabi.