Dubai has discovered an offshore oil field, the office of Dubai’s ruler said today in a statement. The small oil producer Dubai was evaluating the size of the field and potential production, the statement is saying. The ruler’s office was unable to provide further information or give any details. The state-run Dubai Petroleum Establishment also declined to give out further information.

“This 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,” the UAE state news agency WAM stated. The discovery is just in time for the cash-strapped emirate Dubai, which is restructuring it’s $22bn debt of state-owned conglomerate Dubai World (we reported earlier). Still, the new oil- field was unlikely to pump enough oil to have a major impact on the emirate’s revenues, oil industry sources said. But is that true?

“I can’t imagine it being a very large,” said one industry source. “Those areas are pretty well explored, so the chances of finding a major oil field would be pretty slim. It’s likely to be less than 10 000 bpd, rather than some kind of lifesaver for Dubai.” As long as no details are official nobody can say what size the oil field has.

The discovery was made to the east of the Rashid oil field, one of four that produce most of the emirate’s crude. If it is close to Rashid, output could be tied into that field’s existing infrastructure and it could be pumping within a year to 18 months, industry sources said. This would save money and a faster start could bring in more revenue. In another report the daily newspaper Al Bayan stated today industry sources as saying that the field was “promising”.

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 Dubai pumps only a fraction of the supply from the United Arab Emirates, the world’s third largest oil exporter with output of around 2,3 million bpd. The emirate Abu Dhabi produces most of the UAE’s oil and held over 90% of its reserves before the new discovery. 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. Dubai’s oil output was highest in 1991 at over 400 000 bpd. Dubai’s offshore fields are operated by Petrofac. The company’s spokeswoman in London declined to comment on the new discovery. Aside from Rashid, Dubai’s three other main producing fields are Fateh, southwest Fateh and Falah.

This is finally some really good news for Dubai, what do you think? Doesn’t this just set the mood right for the upcoming weekend