State-owned firm Abu Dhabi National Oil Company (Adnoc) is planning to invest over AED400bn ($109bn), over the next five years, to boost oil and gas output as well as strengthen downstream activities.
The company’s new capital expenditure program has been approved by the Supreme Council of Energy (SPC), which oversees the energy strategy and programs in UAE.
Adnoc said that its new strategy aims to unlock, create and maximize value in its upstream and downstream businesses.
In a bid to boost gas output, the firm plans to focus on exploring and appraising potential individual gas deposits in tight reservoirs; develop untapped unconventional resources; and expand sour gas production,
As part of the downstream strategy, Adnoc seeks to expand refining, gas processing and petrochemicals business in UAE and also invest in international downstream activities.
Adnoc said: “Enhanced efficiencies have brought ADNOC’s leading low production cost down even further, a factor driving interest in the upcoming offshore concessions, which have attracted more than 14 potential partners from across the world.”
By the end of 2018, the firm plans to boost oil production capacity to 3.5 million barrels per day (bpd).
ADNOC Group CEO Dr Al Jaber said: “Our intention to explore and appraise our unconventional resources, in collaboration with value-add, strategic partners, reinforces Adnoc’s objective to further diversify our hydrocarbon assets base and enable value creation through vast untapped resources.
“We aim to unlock and deliver material and commercially viable production from Abu Dhabi’s unconventional resources by 2030, with a focus on gas and gas liquids.”
Additionally, Adnoc said it would continue to invest in advanced technology, including artificial intelligence (AI), and data analytics to further maximize the value of upstream and downstream operations.
Recently, the firm proposed its plan for partial initial public offering (IPO) of at least 10% stake or 1.25 billion shares, and a maximum of 20% stake or 2.5 billion shares, in its fuel distribution unit, ADNOC Distribution.
Image: Adnoc’s new capital expenditure program was approved by the Supreme Council of Energy (SPC). Photo: courtesy of Abu Dhabi National Oil Company.