The UAE will pump Dh486 billion (132b$) into ADNOC to boost its oil and gas production in the period 2019-2023.
The announcement comes on the threshold of US sanctions against Iranian crude oil exports. Donald Trump wants to oblige Tehran to accept a more restrictive agreement on curbing its nuclear and missile program.
His Highness Sheikh Mohamed bin Zayed Al Nahyan chaired the meeting and confirmed the plan. The council unveiled a discovery of gas totaling 15 trillion standard cubic feet and one billion barrels of oil in place. Besides, also approved Adnoc’s new five-year business plan. Thus, a company’s capital investment will grow by Dh486 billion between 2019 and 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 or supply position and evolving energy mix,” states ADNOC.
Adnoc’s plans to transform into a performance-led, more commercially-minded organization. Sheikh Mohamed supported the decision and he hopes to create long-term, sustainable value to enable the UAE’s economic ambitions. He also acknowledged Adnoc’s strong financial and operational performance and its strong commitment to maximizing in-country value.
Adnoc’s current capacity is three million bpd. It is foreseen to raise up to 3.4 million bpd by the end of 2018, 4 million bpd by 2020 and 5 million bpd by 2030. Moreover, the company has lately proposed to triple the production of petrochemicals to 14.4 million tonnes per annum by 2025.
“Gas development is a key priority, in part to help reduce dependence on imports. We have already seen a rise in hydrocarbon project awards in 2018. We expect this to continue,” Monica Malik, chief economist at Abu Dhabi Commercial Bank, says.