Abu Dhabi National Oil Company Announces $132 Billion CAPEX Program, Integrated Gas Strategy and an Increase in Oil Production
Company’s historic gas strategy will enable the UAE to become gas
self-sufficient, with the potential to become a net gas exporter
Oil production capacity to increase to 4mmbpd by end of 2020 and
5mmbpd by 2030
ADNOC to sustain LNG production to 2040
Discovery of 1 billion barrels of oil and 15 trillion square cubic
feet of additional gas
The
Abu Dhabi National Oil Company’s (ADNOC) announced, today, its plans
to launch a new integrated gas strategy and increase its oil production
capacity to 4 million barrels per day (mmbpd) by the end of 2020 and
5mmbpd by 2030, following approval from the Supreme Petroleum Council
(SPC), the highest governing body of the oil and gas industry in Abu
Dhabi. The company also announced capital investment growth of $132.33
billion between 2019-2023 and new discoveries of 1 billion barrels of
oil.
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ADNOC HQ Building in Abu Dhabi, United Arab Emirates (Photo: AETOSWire)
ADNOC’s gas strategy will add potential resources that will enable the
UAE to achieve gas self-sufficiency, with the aim of potentially
transitioning to a net gas exporter. ADNOC also announced new
discoveries of gas, totaling 15 trillion standard cubic feet (tscf). The
gas strategy will sustain LNG production to 2040 and allow ADNOC to
seize incremental LNG and gas-to-chemicals growth opportunities, where
they arise, from the UAE’s dynamic demand-supply position and evolving
energy mix.
Speaking at the annual SPC meeting, H.E. Dr. Sultan Ahmed Al Jaber, UAE
Minister of State and ADNOC Group CEO, said: “Our historic gas
self-sufficiency strategy marks an important new, accelerated phase in
the delivery of ADNOC’s 2030 growth strategy. We will continue to unlock
and deliver increased and commercially viable production from our oil
and gas reserves, in response to the world’s growing demand for energy.
“The incremental increase in our oil production capacity will enable
ADNOC to continue to be a reliable and trusted energy supplier that has
the flexibility and capacity to respond and capitalize on the forecasted
growth in demand for crude.”
“At the same time, the substantial investments we will make, in the
development of new and undeveloped reservoirs, gas caps and
unconventional resources, will ensure we can competitively meet the
UAE’s growing demand for power generation and industrial use while
maintaining our international commercial commitments and seizing
incremental LNG and gas-to-chemicals growth opportunities,” H.E. Dr. Al
Jaber added.
ADNOC’s integrated oil and gas strategy underpins its $45 billion
downstream investment plans, announced in May, which will see the
company triple production of petrochemicals to 14.4 million tons per
year by 2025. In May, at its Downstream Investment Forum, ADNOC unveiled
a blueprint to create the world’s largest integrated refining and
petrochemicals complex in Ruwais, which will enable it to further
stretch the value of every barrel it produces.
The discovery of significant new oil reserves endorses the Abu Dhabi
government’s decision, earlier this year, to open six geographical oil
and gas blocks for competitive bidding. Based on existing data from
detailed petroleum system studies, seismic surveys, log files and core
samples from hundreds of appraisal wells, estimates suggest these new
blocks hold multiple billion barrels of oil and multiple trillion cubic
feet of natural gas. The first exploration and production licenses are
expected to be awarded in the first quarter of 2019.
The licensing strategy represents a major advance in how Abu Dhabi
unlocks new opportunities and maximizes value from its hydrocarbon
resources. It is also consistent with ADNOC’s approach to expanding its
strategic partnerships across all areas of its business. The successful
bidders will enter into agreements granting exploration rights and,
provided defined targets are achieved in the exploration phase, be
granted the opportunity to develop and produce any discoveries with
ADNOC, under terms set out in the bidding package.
Industry projections, H.E. Dr Al Jaber highlighted, validate ADNOC’s
integrated oil and gas strategy. For the first time, the world is on the
verge of consuming 100 million barrels of oil per day, with oil
consumption increasing by an additional 10 million barrels per day by
2040, he said. Over the same period, demand for natural gas will
increase by 40 percent, while the market for higher-value polymers and
petrochemicals will grow by 60 percent.
About ADNOC
ADNOC is a major diversified group of energy and petrochemical companies
that produces about 3 million barrels of oil and 10.5 billion cubic feet
of raw gas a day. Its integrated upstream, midstream and downstream
activities are carried out by 14 specialist subsidiary and joint venture
companies. To find out more visit www.adnoc.ae.
For further information: media@adnoc.ae.
*Source: AETOSWire
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