Shaikh Mohammad Bin Zayed visits the Panorama Digital Command Centre, after attending a Supreme Petroleum Council meeting, at Adnoc’s headquarters. Also seen are Shaikh Mansour Bin Zayed Al Nahyan, UAE Deputy Prime Minister and Minister of Presidential Affairs; Shaikh Hazza Bin Zayed Al Nahyan, Vice-Chairman of the Abu Dhabi Executive Council, Dr Sultan Ahmed Al Jaber, UAE Minister of State, Chairman of Masdar and CEO of ADNOC Group (second left) and Dr Ahmad Mubarak Al Mazrouei, Secretary General of the Abu Dhabi Executive Council (right). Image Credit: WAM

Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) will be investing Dh400 billion over the next five years in exploration, development and production of oil and gas and petrochemicals projects to enhance growth opportunities.

The strategy was approved by the Supreme Petroleum Council (SPC) headed by His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

The petroleum council also approved Adnoc’s plans for the exploration, assessment and development of unconventional gas resources as the company seeks to enable future value-creation from its untapped gas resources.

It also gave the green light to Adnoc to pursue international downstream investments that will position the company as a global player in the downstream market, a statement on WAM said.

The SPC is the highest governing body of the oil and gas industry in Abu Dhabi. The council formulates, approves and oversees the implementation of Abu Dhabi’s petroleum policy and follows up on its implementation across all areas of the petroleum industry to ensure that set goals are accomplished.

 Adnoc will offer a minimum 10 per cent stake, or 1.25 billion shares, and a maximum 20 per cent stake, or 2.5 billion shares, in the partial IPO of Adnoc Distribution


Shaikh Mohammad tweeted on Monday, “With the blessing of President His Highness Khalifa Bin Zayed, we convened the SPC (supreme petroleum council) today and approved Adnoc’s expanded growth strategy supported by a capex program of over Dh400b.”

He also added in another tweet, “Adnoc will expand its portfolio through strategic international downstream investments and develop Abu Dhabi’s unconventional gas resources — cementing the UAE’s position in the global energy industry.”

The development comes as Adnoc undertakes a number of new initiatives to increase its production and enhance its partnership with various stakeholders in oil and gas production to leverage its influence across the globe.

Adnoc recently confirmed plans to offer a minimum 10 per cent stake, or 1.25 billion shares, and a maximum 20 per cent stake, or 2.5 billion shares, in the partial IPO of Adnoc Distribution, its fuel distribution unit.

An indicative price range of between Dh2.35 and Dh2.95 per share, has been set. At the top of the range, the IPO would be the largest in the UAE since DP World was floated, 10 years ago.

“In line with the SPC’s directives, over the coming years, we will make strategic, commercially driven and targeted investments, across our entire value chain, aimed at maximising existing resources, while also identifying and developing new, value-enhancing opportunities,” said Dr Sultan Al Jaber, Minister of State and Adnoc Group CEO.

“We will continue to strengthen our resilience to the changing energy landscape, while remaining focused on managing our unit cost and driving performance, profitability and efficiency across our business.”

 

Key points

 

1. Adnoc to expand oil production capacity to 3.5 million barrels per day by the end of 2018

2. The firm attracts more than 14 potential partners from across the world for its upcoming offshore concession

3. It will grow its crude refining capacity by 60 per cent and more than triple its petrochemical production, to 14.4 metric tonnes per annum (mtpa) by 2025

4. In chemicals, a new linear alkyl benzene project and a new mixed feed cracker, at Borouge, will enable new value chains to be created.

5. An aromatics project will convert naphtha, which is currently exported, into gasoline and aromatics and a large project to enhance the crude processing flexibility of its 900,000 barrels per day refining system will be taken forward.