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Adnoc plans $50b projects

New investments by UAE's state-owned oil company is expected to boost gas output by 1b cubic feet per day.

  • General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAEImage Credit:Ravindranath/Gulf News
  • Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed ForcImage Credit:Ravindranath/Gulf News
  • Image Credit:Ravindranath/Gulf News
Gulf News

Abu Dhabi: The UAE's state-owned Abu Dhabi National Oil Company (Adnoc) plans to award projects worth up to $50 billion (Dh184 billion) in 2009-10, Yousuf Omair Bin Yousuf, Adnoc's chief executive officer, said on Monday.

Speaking at the opening of the Gastech-2009 conference and exhibition in Abu Dhabi, Bin Yousuf said: "The value of the projects which will be awarded in 2009-2010 amounts to $35-$50 billion."

Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, toured the exhibition.

Bin Yousuf said 2009 is one of the most difficult years in the world economy due to the recession and shortage of liquidity.

"This financial crisis caused many companies and countries producing or consuming energy to downsize and economise. Consequently this led to weakness in world demand and a decrease in oil prices, leading to problems in expansion and execution of projects," said Bin Yousuf.

"However in Adnoc we look at the bright and positive side of the crisis which has created a window of opportunity in order to execute our giant projects at lower cost and better quality," Bin Yousef added.

Bin Yousuf said following directives from President His Highness Shaikh Khalifa Bin Zayed Al Nahyan and Shaikh Mohammad, Adnoc continued to implement its projects to increase oil and gas production capacity.

"The contracts of the integrated gas projects that link offshore and onshore activities will be awarded and will produce one billion cubic feet of gas daily. Moreover, four major tenders related to the development of the Shah Field have been issued," said Bin Yousuf.

He said Adnoc and its group of companies have utilised sour gas, which constitutes a large percentage of the gas produced in Abu Dhabi. It includes two projects - Shah and Elixier, which will produce nitrogen to be used in injection as a substitute for methane.

"This will increase the methane amount in the Abu Dhabi gas network and will assist in achieving a comprehensive vision and a development plan in Abu Dhabi," said Bin Yousuf.

He added: "As for our future plans, Abu Dhabi has become a leader in the field of research and implementing alternative energy which is led by Masdar Company.

"There is cooperation between Masdar and the Adnoc Group of Companies in minimising carbon dioxide emissions by gathering carbon dioxide, then injecting it into the wells in order to increase oil production and reduce global warming," said Bin Yousuf.