The highest governing body of oil, gas and similar industry-related activities in the Abu Dhabi, Supreme Petroleum Council (SPC) has approved an amount of $122 billion (Dh448 billion) capital expenditure plan for UAE state-owned oil company, Abu Dhabi National Oil Company (ADNOC).
This amount is accounted for the development for over 5 years (2021-2025), of which $43 billion (Dh160 billion) will be spent on the development of the local economy.
The meeting was chaired by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Vice-Chairman of the SPC.
SPC’s announcement of 22 billion barrels of recoverable unconventional oil resources and an addition of two billion barrels of conventional oil reserves was accompanied by the unveiling of the Capex program.
During the meeting, Sheikh Mohamed reiterated the support of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Chairman of the SPC, for ADNOC, as the company continues to deliver sustainable value through its 2030 plan for the national economy.
Sheikh Mohamed commended the agility and resilience of ADNOC, which enabled the company to ensure zero interruptions in its operations while achieving operational and financial goals despite the harsh conditions of the market.
The Crown Prince also appreciated the robust and positive reaction of ADNOC to COVID-19, which continues to prioritize its people’s health and safety, ensure business continuity and the sustained contribution of ADNOC to the UAE economy.
The SPC said during the meeting that, “the inflow to the local economy will be enabled by ADNOC’s In-Country Value (ICV) program which is aimed at nurturing new local and international partnerships and business opportunities for the private sector, fostering socio-economic growth and creating job opportunities for Emiratis.”
At the event, SPC approved ADNOC to provide exploration blocks in Abu Dhabi’s second competitive block bid round, which began in 2019.
“Today’s announcement by the SPC of the discovery of recoverable unconventional oil resources demonstrates how ADNOC is efficiently expediting the exploration and development of Abu Dhabi’s unconventional resources and marks a major milestone as the nation’s unconventional industry evolves. Importantly, the increase in the UAE’s conventional oil reserves sends a strong signal that ADNOC is leaving no stone unturned in unlocking value from our abundant hydrocarbon resources to ensure the UAE remains a long-term and reliable energy provider to the world for decades to come.”
The Capex plan by ADNOC will allow it to drive upstream growth, advance downstream expansion, and further improve the marketing and trading capabilities of the company to ensure that over the next 50 years it retains its competitiveness and industry leadership role.
“In parallel, we are developing large-scale capital projects in Ruwais to further stretch the margin from each barrel of oil we produce as we deliver on our downstream expansion strategy – at the heart of which are our plans to develop Ruwais into a dynamic, global hub for the UAE’s industrial growth and economic diversification – and we are strengthening our marketing, supply, and trading capabilities to unlock greater value from our products,” concluded Mr. Al Jaber.
The SPC also reviewed ADNOC and ADQ’s recently announced joint venture named Ta’ziz, which is formed within the Ruwais Derivatives Park to finance and grow chemical projects. The meeting also discussed the transformation of the Marketing, Supply and Trading Directorate of ADNOC, which has grown to deliver a wider service to customers, while further expanding the value of every barrel produced, processed and sold by ADNOC.