ADNOC plans to boost oil production capacity to 5 million barrels per day by the end of 2030, it said on Monday as it revealed new oil and gas discoveries in the UAE.
Abu Dhabi’s Supreme Petroleum Council (SPC) approved ADNOC’s new plans, which include increasing oil production capacity to 4 million barrels per day by 2020.
The SPC meeting was presided over by H.H. 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 SPC’s approval of 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, the company said in a statement.
At the meeting, the SPC announced new discoveries of gas in place, totalling 15 trillion standard cubic feet. It also announced new discoveries of 1 billion barrels of oil in place and approved ADNOC’s new five-year business plan and capital investment growth of AED486 billion (US$132.33 billion) between 2019-2023.
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.
H.H. Sheikh Mohammed reaffirmed the support of United Arab Emirates President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, for ADNOC’s transformation into a performance-led, more commercially minded organization and its focus on creating long-term, sustainable value to enable the UAE’s economic ambitions.
He also expressed the SPC’s recognition of ADNOC’s strong financial and operational performance, its use of creative and strategic partnerships to unlock and drive substantial value across the entire business and its strong commitment to maximizing in-country value.
The SPC is the highest governing body of the oil and gas industry in Abu Dhabi. The Council formulates, approves and oversees the implementation of Abu Dhabi's petroleum policy and follows up its implementation across all areas of the petroleum industry to ensure that the set goals are achieved.
ADNOC’s integrated oil and gas strategy underpins its AED165 billion downstream investment plans announced in May, which will see the company triple production of petrochemicals to 14.4 million tons per annum by 2025.
ADNOC earlier this year, opened 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.
H.E. Dr. Al Jaber said: “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 responding to domestic demand, we will maintain our international commercial commitments and seize incremental LNG and gas-to-chemicals growth opportunities,” H.E. Dr Al Jaber added.