ADNOC Is Thriving On Multiple Business Opportunities

The Abu Dhabi National Oil Company (ADNOC) is planning to accelerate the delivery of its new integrated gas strategy, including its plans to increase its oil production capacity to 4 MMbpd by 2020.

H.E. Dr Sultan Ahmed Al Jaber, the UAE minister of state and ANDOC group CEO, stated there is no slowing down from their momentum gained during a record-breaking Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC). The conference was attended by more than 145,000 industry professionals, a 30% attendance increase compare to last year. International visitors were up by 50%.

Dr. Al Jaber mentioned ADNOC will be releasing additional strategic announcements in the coming weeks, including additional new partners for the Ghasha concession, which is ADNOC’s offshore ultra-sour gas mega project, including Hail, Ghasha, Dalma and other offshore fields.

Upcoming announcements will be focused on the Abu Dhabi government’s historic decision, earlier this year, to open six oil and gas blocks for competitive bidding. The blocks potentially hold multiple Bbo and multiple Tcfg. The first exploration and production licenses are expected to be awarded in the first quarter of 2019.

The approval of the Abu Dhabi’s Supreme Petroleum Council’s (SPC) for ADNOC’s plan to appraise and develop new gas resources will enable the UAE to archive gas self-reliance. The aim of transitioning to a net gas exporter LNG production to 2040. The SPC also approved an increase of ADNOC’s oil production capacity to 4 MMbopd by the end of 2020 and 5 MMpbd by 2030. Including a new five-year business plan and capital investment growth of AED 486 billion (U.S. $132.3 billion) between 2019-2023.

Dr. Al Jaber stated: “During ADIPEC, we made a number of important announcements, including strategic partnerships with Total and Eni, as a direct result of the recent SPC approval of our new five-year business plan and long-term growth strategy. These new partnerships, along with our forthcoming collaborations with Saudi Aramco and Mubadala, will make significant contributions to the delivery of our 2030 growth strategy.

“The announcements also represent progress on our efforts to tap the energy resources needed to enable global economic growth in the 4th Industrial Age – a mission we have defined as Oil & Gas 4.0. We are on the brink of a new era of opportunity for the oil and gas industry – an era in which digital innovation is delivering unprecedented levels of prosperity and driving demand for our products. ADNOC is gearing up to meet this demand and, through creative partnerships, seize opportunities.”

“Our ADIPEC announcements are only the beginning of our next phase of rapid growth. There will be no let-up in the momentum we have created during ADIPEC. More significant announcements are in the pipeline as we focus on maximizing value from all our resources and unlocking increased and commercially viable production from our oil and gas reserves,” Dr. Al Jaber added.

With a strategic partnership with Total, ENI and MoU’s with Mubadala and Saudi Aramco, ADNOC announced a $1.4 billion investment to upgrade and expand its Bu Hasa field to increase production capacity to 650,000 bpd. An addendum to an existing agreement with Indian Strategic Petroleum Reserves Ltd. (ISPRL) to explore the possibility of storing ADNOC crude oil at ISPRL’s underground oil storage facility, at Padur, in Karnataka.

An additional announcement to extend its LNG production in joint venture with Mitsui, BP and Total.

Reflecting on the recently concluded ADIPEC, Dr. Al Jaber said the record number of corporate CEOs, government ministers, policy-makers and innovators – from the world’s most prominent oil and gas majors – who attended the event demonstrated Abu Dhabi’s status as a thought leadership conveyor and a driving force in the global energy conversation.

Dr. Al Jaber continued: “ADIPEC has, again, set the agenda for the global energy conversation and positioned Abu Dhabi to play a central role in the growth of the global oil and gas industry. “We are at the beginning of a new era of opportunity. Historic shifts in global energy use are creating unprecedented demand for our products.