ADNOC to drive more than $43.6bln back into UAE economy from 2021-25

The oil giant announces discovery of substantial recoverable unconventional oil resources located onshore, estimated at 22bln stock tank barrels

  
Sultan Ahmed Al Jaber, UAE Minister of State and the Abu Dhabi National Oil Company (ADNOC) Group CEO poses during the interview at the Panorama Digital Command Centre at the ADNOC headquarters in Abu Dhabi, UAE December 10, 2019.

Sultan Ahmed Al Jaber, UAE Minister of State and the Abu Dhabi National Oil Company (ADNOC) Group CEO poses during the interview at the Panorama Digital Command Centre at the ADNOC headquarters in Abu Dhabi, UAE December 10, 2019.

REUTERS/Satish Kumar

The Supreme Petroleum Council (SPC) in Abu Dhabi has approved ADNOC’s capital expenditure (CAPEX) plan of AED 448 billion ($122 billion) for 2021-2025 to enable smart growth. As part of this plan, the oil giant aims to drive over AED160 billion ($43.6 billion) back into the UAE’s economy between 2021-2025.

ADNOC also announced the discovery of substantial recoverable unconventional oil resources located onshore, estimated at 22 billion stock tank barrels (STB), and an increase in conventional oil reserves of 2 billion STB in Abu Dhabi.

The announcements were made following the SPC meeting presided over by Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates (UAE) Armed Forces and Vice-Chairman of the SPC.

The inflow to the local economy will be enabled by ADNOC’s In-Country Value (ICV) program which is aimed at nurturing new local and international partnerships and business opportunities for the private sector, fostering socio-economic growth and creating job opportunities for Emiratis, a statement from ADNOC said.

In addition, the SPC gave approval for ADNOC to award exploration blocks in Abu Dhabi’s second competitive block bid round which was launched in 2019.

During the meeting, Sheikh Mohamed bin Zayed reaffirmed the support of the UAE President and Chairman of the SPC, Sheikh Khalifa bin Zayed Al Nahyan, for ADNOC as the company continues to deliver sustainable value for the national economy through its 2030 strategy.

Sheikh Mohamed bin Zayed commended the Abu Dhabi National Oil Company’s (ADNOC) agility and resilience, which has enabled the company to ensure zero interruptions to its operations while achieving its operational and financial targets, despite the tough market conditions, the statement said.

"Following the SPC’s approval of ADNOC’s CAPEX, we are  well-positioned to continue driving long-term and sustainable value for the UAE while creating opportunities for local businesses and private-sector jobs for Emiratis through our in-country value target,” Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said.

“In parallel, we are developing large-scale capital projects in Ruwais to further stretch the margin from each barrel of oil we produce as we deliver on our downstream expansion strategy – at the heart of which are our plans to develop Ruwais into a dynamic, global hub for the UAE’s industrial growth and economic diversification –  and we are strengthening our marketing, supply, and trading capabilities to unlock greater value from our products,” he added. 

According to a statement from ADNOC its CAPEX plan will enable it to drive upstream growth, progress downstream expansion and further strengthen the company’s marketing and trading capabilities to ensure it maintains its competitiveness and industry leadership position over the next fifty years.

(Writing by Seban Scaria; editing by Anoop Menon)

seban.scaria@refinitiv.com

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© ZAWYA 2020

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