Abu Dhabi National Oil Company (ADNOC) will accelerate delivery of its new integrated gas strategy, as well as its plans to increase its oil production capacity to 4 million barrels per day by 2020.
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO says there would be no let-up in the momentum gained during a record-breaking Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
H.E. Dr. Al Jaber signaled that ADNOC would be making additional strategic announcements in the coming weeks, including new partners for the Ghasha concession, which is ADNOC’s offshore ultra-sour gas mega project, consisting of Hail, Ghasha, Dalma and other offshore fields. Other upcoming announcements will center 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 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 announcements will build on Abu Dhabi’s Supreme Petroleum Council’s (SPC) approval of ADNOC’s plans to appraise and develop new gas resources that will enable the UAE to achieve gas self-sufficiency, with the aim of transitioning to a net gas exporter, sustaining LNG production to 2040.
The SPC also approved an increase in ADNOC’s oil production capacity to 4 million barrels per day by the end of 2020 and 5 million barrels per day by 2030, as well as ADNOC’s new five-year business plan and capital investment growth of AED 486 billion (U.S. $132.33 billion) between 2019-2023.
H.E. Dr. Al Jaber said: “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 the opportunities of Oil and Gas 4.0.
“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 maximising value from all our resources and unlocking increased and commercially viable production from our oil and gas reserves,” H.E. Dr. Al Jaber added.
In addition to the strategic partnership announcements with Total and Eni and MoU’s with Mubadala and Saudi Aramco, ADNOC also announced an AED 5.1 billion (U.S. $1.4 billion) investment to upgrade and expand its Bu Hasa field, which will increase crude oil production capacity to 650,000 barrels per day (bpd). It also announced a framework agreement with the 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. The agreement builds on an earlier agreement to store 5.86 million barrels of ADNOC crude oil at another ISPRL underground facility, in Mangalore.
At this year’s ADIPEC, ADNOC also announced its intention to extend to 2040 its gas supply agreement with ADNOC LNG, in coordination with ADNOC LNG’s joint venture partners, Mitsui, BP and Total.
For the third year in a row, ADNOC also hosted its annual Business Partnership Forum at ADIPEC, during which it thanked the private sector for its support during the implementation phase of its new ICV program, as it delivers on its 2030 growth strategy. At the Forum, ADNOC announced its 2018 In-Country Value (ICV) spend – the amount ADNOC and its contractors spend on local goods and services – which will be over AED 18 billion, a significant year-on-year increase.
Reflecting on the recently concluded ADIPEC, H.E. 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 convenor and a driving force in the global energy conversation.
H.E. 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, as it seizes the opportunities created by Oil & Gas 4.0, to ensure a dynamic and thriving oil and gas industry for decades to come.
“We are at the beginning of a new era of opportunity. Historic shifts in global energy use are creating unprecedented demand for our products. To seize the opportunities of Oil & Gas 4.0, ADNOC will utilise all its resources, its partnerships and, in particular, the latest technologies to deliver on the ambitious strategic objectives of our 2030 growth strategy.”
The latest edition of ADIPEC broke a series of records. Provisional figures show: An increase in visitor attendance by 32 percent, at 145,000; a 15 percent increase in gross square meters of exhibitor space, at 155,000 sqm; a 23 percent increase in the number of national and international oil companies participating (42); and a 25 percent increase in the number of government ministers and industry CEOs taking part in the conference sessions (100+). The number of country pavilions was also up 16 percent, from 25 to 29, and the number of exhibiting companies was up 8 percent. ADIPEC’s conference streams included three Ministerial Sessions; 10 upstream and downstream Business Leader Sessions; 11 C-Suite Dialogues; three closed-door C-Suite Roundtables; two CEO Finance Breakfasts and six Inclusion and Diversity Discussions.