Abu Dhabi confirmed its ambitions to export more oil and gas while seeking investors to fields at home and hunting for assets abroad.
Since ADNOC (state-owned Abu Dhabi National Oil Company) taps partnerships to boost its domestic oil output, it’s also looking for refineries and other assets overseas to secure future demand for its crude. The emirate belongs to Middle Eastern producers. The tight spending caps to plow billions of dollars into new sources of both oil and gas.
Adnoc intends to increase export capacity when Abu Dhabi becomes self-sufficient in the fuel. “We are working on an expansion plan for our LNG facility, which will be supplemented by us exploring other LNG opportunities beyond our borders,” Chief Executive Officer Sultan Al Jaber told Bloomberg.
Adnoc strives to turn the U.A.E. into a net exporter of gas by 2030. Besides, the company plans to add nearly 2 million barrels of daily crude production capacity by then. The U.A.E. is one of the OPEC nations which tries to boost sales. That happens against the backdrop of Iran and Venezuela see their output disrupted by sanctions and internal strife.
Company of the future
“We want Adnoc to be the company of the future, to conduct business like an international oil company while we take advantage and leverage the fact that we are the national oil company,” Al Jaber said.
Persian Gulf producers traditionally cooperate with foreign companies whose ancestors discovered the oil of the region a century ago. Adnoc has worked with international companies for more than four decades. The company received 39 bids for new research projects that will be granted by early next year, Al Jaber stated.
This year, the company has closed many new deals. The global partners will help develop some of their most significant oil fields and produce gas from emirate’s new discoveries. This week it inked a gas-development agreement with French major Total SA and Italy’s Eni SpA. The sides agreed to explore LNG possibilities.
“Our intent here is to advance our gas portfolio,” Al Jaber claimed. “We have the market, and we also have international buyers who want to take our gas.”
Adnoc’s aspirations extend to refining and petrochemicals. Al Jaber stated he expects to close deals in early 2019 to strike a chord with partners for its planned $45 billion downstream expansion. The company is looking for investors in its $20 billion refining unit. Besides, it can sell shares in its pipeline business in Abu Dhabi. It’s also conducting a petroleum refining transaction in India.
“Adnoc is going to stay very much focused on Abu Dhabi, while we explore downstream opportunities beyond our borders,” Al Jaber said. “We’re going to be in strategic market destinations while we also help expand our market share by placing our crude.”