Abu Dhabi: UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan presided over the annual meeting of the Abu Dhabi National Oil Company (ADNOC) Board of Directors on Monday in his capacity as its Chairman.
During the meeting, the board approved a capital expenditure of Dh550 billion ($150 billion) for 2023-2027, and also directed ADNOC to pursue a Net Zero by 2050 ambition to support the UAE Net Zero by 2050 Strategic Initiative.
The board also endorsed the creation of ADNOC Gas, a new gas processing and marketing company, effective January 1, 2023. The flagship company will combine the operations, maintenance and marketing of ADNOC Gas Processing and ADNOC LNG into one consolidated entity. ADNOC will proceed with an initial public offering (IPO) of a minority stake in the new company on the Abu Dhabi Securities Exchange (ADX) in 2023, subject to applicable regulatory approvals.
The board also endorsed plans to bring forward ADNOC’s 5 million barrels per day (mmbpd) oil production capacity expansion to 2027, from the previous target of 2030, as part of the accelerated growth strategy.
The board also approved ADNOC’s strategy to accelerate growth across its value chain to responsibly meet rising energy demand and support global energy security. As part of the strategy, ADNOC will establish a new Low Carbon Solutions & International Growth vertical focused on new energies, gas, liquefied natural gas (LNG) and chemicals.
Sheikh Mohamed underlined ADNOC’s role as a primary catalyst for the UAE’s growth and diversification and commended the company for maximising value for the nation and creating new economic and industrial opportunities for the private sector. He also praised ADNOC’s efforts to drive industrial growth through its In-Country Value (ICV) programme and its support for the ‘Make it in the Emirates’ initiative.
This year, ADNOC’s ICV programme has driven over Dh35 billion ($9.54 billion) back into the nation’s economy and enabled 2,000 UAE nationals to be employed in the group’s supply chain. In addition, a total of 5,000 UAE nationals have been employed in ADNOC’s supply chain through the programme since it was launched.
ADNOC is also supporting the ‘Make it in the Emirates’ initiative and has signed agreements for local manufacturing opportunities worth over Dh25 billion ($6.8 billion) with UAE and international companies this year, as it delivers on its target to locally manufacture over 100 products in its procurement pipeline worth Dh70 billion ($19 billion) by 2030.
UAE’s hydrocarbon reserves have increased by 2 billion stock tank barrels (STB) of oil and 1 trillion standard cubic feet (TSCF) of natural gas this year. These additional reserves increase the UAE’s reserves base to 113 billion STB of oil and 290 TSCF of natural gas.
“ADNOC is well-positioned for this new phase of accelerated growth across the energy value chain. Through our Net Zero by 2050 ambition, we are placing sustainability at the centre of our growth,” said Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
“The world needs maximum energy, minimum emissions and it needs all the energy solutions if we are to ensure global energy security. ADNOC is committed to making today’s energy cleaner while investing in the clean energies of tomorrow to strengthen our position as a reliable and responsible energy provider. As we deliver on these objectives, we will continue to drive greater and more sustainable value for the UAE, create opportunities for the private sector to benefit from ADNOC’s growth and enable more skilled job opportunities for UAE Nationals.”