It is reported that US oil major Occidental Petroleum is planning to invest USD 500 million over the next 3 to 4 years to appraise and develop two small fields in Abu Dhabi.

As per report, Abu Dhabi National Oil Company, UAE’s state oil company has signed with Oxy to operate and hold 100% interest in Jarn Yaphour and Ramhan, oil and gas fields.

According to the Oxy, the newly created concessions which is marginal in terms of its size is immediately planned for production by next year.

Jarn Yaphour located onshore near the capital is expected to produce a gross 10,000 barrels per day from the initial development. The Ramhan discovery located in very shallow water near the Abu Dhabi refinery was tested in 1992 and flowed at a combined rate of 1,750 barrel per day and 14 million cubic feet of gas per day from one well. Initial production from the field is expected to start by 2011.

Mr Ray Irani chairman & CEO of Occidental said that “The development of these two fields provides an exciting opportunity to create value for the people of Abu Dhabi and for our stockholders.”

Oxy has earlier tied up with Abu Dhabi’s investment unit International Petroleum Investment Company to jointly evaluate and participate in development of upstream and downstream projects both within and outside the Middle East region.