When was Oil discovered in UAE?
Many has in their mind, When was Oil discovered in UAE. So I got into finding the best possible answers with the miles stone of UAE oil discovery & countries development process. Oil in United Arab Emirates is a treasure trove not only to the country itself but also for the whole world. No doubt, it is the reason behind the status of Dubai, Abu Dhabi and other UAE cities what they are today. Though the Oil was found in UAE in 1958, the venture of finding oil in UAE wasn’t a bed of roses nevertheless the God’s blessings and Visionary leadership made it possible.
In 1930’s, the ruler of Abu Dhabi at that time; Sheikh Shakhbut Bin Sultan Nayan persuaded his idea of finding a proper water supply in Abu Dhabi and as a result Brackish water was found in Shallow pits. Later on the Sheikh’s interest on water turned towards oil and he granted oil concession with the Iraq Petroleum Company. Since Iraq Petroleum Company was the dominant body of oil resource explorations in Middle East, a sub-company under the IPC called Petroleum Development (Trucial States) has been sent to Abu Dhabi in 1936 to discover oil in inshore areas. In 1939 Abu Dhabi agreed for 75 years oil concession with IPC. In the same year, the 2nd world war was started unexpectedly pausing the explorations.
Petroleum Development Company (PDTS) carried out explorations over 14 years though they weren’t able to find oil in Abu Dhabi inshore areas. In 1953 D’ Arcy Oil Company took over the offshore oil concession in Abu Dhabi, later forming Abu Dhabi Marine Areas (ADMA) owned by British Petroleum (BP) and rançaise des Pétroles (Total).
Making all efforts fruitful in 1958 for the first time Petroleum Development (Trucial states) found the first inshore oil field while the Abu Dhabi Marine Areas (ADMA) was finding oil at Umm Shaif. This was the beginning of the revolution of UAE, though at that time Abu Dhabi was just a state in at the Emirates region. While Petroleum Development (Trucial states) was starting exporting oil by 1962 replaced its name as Abu Dhabi Petroleum Company (ADPC). Meantime by early 1960’s Dubai was also able to find Oil in Fatah. This strengthens the oil resource in the Emirates when both ADMA and ADPC agreed on 50-50 oil share by 1966.
The visionary leader His Highness Sheikh Zayed Al Nayan has seen the potential of developing the country. The wise leader Sheikh Shakhbut Bin Sultan Nayan took the initiative to form a country with the unity of Emirates states in 1971 as soon as the British decided to give independence for Emirates states from British colonization, His Highness Sheikh Zayed Al Nayan became the 1st President of United Arab Emirates (UAE) and changed the whole structure of the country utilizing resources to the maximum. In the same year, Abu Dhabi National Oil Company was formed in the country to manage all the aspects of Oil and Gas of UAE.
Further, taking the country towards prosperity in 1977 Gas reserves were found in Abu Dhabi which has doubled the development. Oil policy was regulated in 1988 in the country when Oil refining industry started massively in the country in 1999 under TAKEER.
In 2004, Abu Dhabi was able to complete the 75 years Oil concession where it no longer needed to share the ownership with any other foreign shareholders there onwards.