UAE state-owned oil company, Abu Dhabi National Oil Company’s (ADNOC) Board of Directors, under the chairmanship of Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, has approved plans to spend $127 billion between 2022 and 2026, out of which $43.6 billion will be directed towards the local economy.
ADNOC also revealed its plans to make a significant increase in national reserves of 4 billion stock tank barrels (STB) of oil and 16 trillion standard cubic feet (TSCF) of natural gas. These additional reserves increase the UAE’s hydrocarbon reserves base to 111 billion STB of oil and 289 TSCF of natural gas.
The new discoveries have reinforced the country’s position as holder of the world’s sixth-largest oil reserves and the seventh-largest gas reserves. The UAE will continue to responsibly unlock its hydrocarbon resources to drive progress and contribute to global energy security, Sheikh Mohamed said.
As ADNOC unlocks the UAE’s lower-carbon oil and gas resources, it is ensuring greater economic value is retained in the local economy through its In-Country Value (ICV) program which is nurturing new business opportunities for the private sector and creating jobs opportunities for UAE Nationals.
The board also approved ADNOC’s New Energies Strategy aimed at further reducing its carbon footprint and enabling it to capitalize on opportunities in renewable energy, hydrogen and other lower-carbon fuels.
Further, the board reviewed the progress of the TA’ZIZ Industrial ecosystem in Ruwais and the strong local and international investor interest received, particularly in the TA’ZIZ Industrial Chemicals Zone, a joint venture with Abu Dhabi Developmental Holding Company (ADQ).
The Chemicals Zone is a key pillar of ADNOC’s downstream and industrial expansion strategy and is helping to hasten the development of Abu Dhabi’s petrochemicals and manufacturing industry.
The board further discussed recent developments in oil and gas markets and noted that ADNOC continues to remain agile, resilient and able to quickly adapt to market conditions.
“We have laid a solid foundation to ensure ADNOC continues to drive greater and more sustainable value for the UAE during the energy transition. As we build on this foundation, we are capitalizing on the many commercial opportunities in this era while strengthening our position as one of the lowest cost and lowest carbon oil and gas producers in the world.”
The increase in oil and gas national reserves was driven by ADNOC’s continuous appraisal activities and allowed by best reservoir management practices across its onshore and offshore portfolio as well as leveraging advanced tailored technologies. In addition, maturing development plans towards achieving ADNOC’s 5 million barrels per day (mmbpd) production capacity target by 2030 contributed to the substantial reserves increase.
Around half of the newly added 4 billion STB oil, national reserves are Murban-grade crude, Abu Dhabi’s highly sought-after lower-carbon crude grade which has been successfully trading on the ICE Futures Abu Dhabi (IFAD) commodities exchange since March 2021.