ADNOC to tap into undeveloped gas reservoirs to meet demand

Abu Dhabi energy company to pursue international downstream investments

  
Abu Dhabi: Adnoc announced on Monday that it is focused on ensuring a sustainable and economic supply of gas for the UAE’s growing demand and to help achieve this, it will access undeveloped tight reservoirs, tap into its gas caps and expand sour gas production.

In addition, it has commenced an exploration drilling programme to explore and appraise the potential of individual gas deposits in tight reservoirs.

“Adnoc utilises industry best practice, drives targeted technology application and will invest in the future development of untapped unconventional resources, over the next five years,” the company said in a statement on WAM.

Currently, Abu Dhabi is tapping sour gas through the Shah gas project in the Western region of Abu Dhabi. The project reached its full production capacity of one billion cubic feet per day and there are plans to increase the capacity further. The UAE mainly imports gas from its neighbouring countries to meet the demand.

In the downstream segment, Adnoc will pursue two parallel paths. Domestically, the company will leverage and optimise its existing assets, ensure fuel self-sufficiency and diversify and grow its refining, gas processing and petrochemicals business portfolio.

At the same time, it will also pursue international downstream strategic and commercially viable investments, aimed at reshaping Adnoc into a global company, with an adaptable, resilient portfolio.

According to a London-based analyst, looking to international downstream opportunities is new on Adnoc’s radar, but many other regional national oil companies have already successfully ventured abroad.

“It will mean Adnoc will partly need to retool and reprogramme to make the step overseas, but presumably the step will be assisted by Adnoc’s foreign partners who will be very excited to help,” the analyst told Gulf News by email.

Adnoc also plans to secure additional captive crude processing capacity in growth markets, establish sector-specific global businesses and enhance its global marketing activities, including introducing non-speculative asset-backed trading to further stretch the dollar from every barrel of oil it produces.

“We will engage in strategic, long-term overseas investments across the downstream value chain. Acting alone, or in partnership with others, we will focus on investments that bring attractive returns, grow market access for our products and allow us to develop a truly international footprint,” said Dr Sultan Al Jaber, Minister of State and Adnoc Group CEO.

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