• November 20, 2018

Abu Dhabi National Oil Company Announces $132 Billion CAPEX Program, Integrated Gas Strategy and an Increase in Oil Production - Odessa American: Business

e-Edition Subscribe

Abu Dhabi National Oil Company Announces $132 Billion CAPEX Program, Integrated Gas Strategy and an Increase in Oil Production

Print
Font Size:
Default font size
Larger font size

Posted: Monday, November 5, 2018 6:02 am

ABU DHABI, United Arab Emirates--(BUSINESS WIRE)--Nov 5, 2018--The Abu Dhabi National Oil Company’s (ADNOC) announced, today, its plans to launch a new integrated gas strategy and increase its oil production capacity to 4 million barrels per day (mmbpd) by the end of 2020 and 5mmbpd by 2030, following approval from the Supreme Petroleum Council (SPC), the highest governing body of the oil and gas industry in Abu Dhabi. The company also announced capital investment growth of $132.33 billion between 2019-2023 and new discoveries of 1 billion barrels of oil.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181105005410/en/

ADNOC HQ Building in Abu Dhabi, United Arab Emirates (Photo: AETOSWire)

ADNOC’s gas strategy will add potential resources that will enable the UAE to achieve gas self-sufficiency, with the aim of potentially transitioning to a net gas exporter. ADNOC also announced new discoveries of gas, totaling 15 trillion standard cubic feet (tscf). The gas strategy will sustain LNG production to 2040 and allow ADNOC to seize incremental LNG and gas-to-chemicals growth opportunities, where they arise, from the UAE’s dynamic demand-supply position and evolving energy mix.

Speaking at the annual SPC meeting, H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “Our historic gas self-sufficiency strategy marks an important new, accelerated phase in the delivery of ADNOC’s 2030 growth strategy. We will continue to unlock and deliver increased and commercially viable production from our oil and gas reserves, in response to the world’s growing demand for energy.

“The incremental increase in our oil production capacity will enable ADNOC to continue to be a reliable and trusted energy supplier that has the flexibility and capacity to respond and capitalize on the forecasted growth in demand for crude.”

“At the same time, the substantial investments we will make, in the development of new and undeveloped reservoirs, gas caps and unconventional resources, will ensure we can competitively meet the UAE’s growing demand for power generation and industrial use while maintaining our international commercial commitments and seizing incremental LNG and gas-to-chemicals growth opportunities,” H.E. Dr. Al Jaber added.

ADNOC’s integrated oil and gas strategy underpins its $45 billion downstream investment plans, announced in May, which will see the company triple production of petrochemicals to 14.4 million tons per year by 2025. In May, at its Downstream Investment Forum, ADNOC unveiled a blueprint to create the world’s largest integrated refining and petrochemicals complex in Ruwais, which will enable it to further stretch the value of every barrel it produces.

The discovery of significant new oil reserves endorses the Abu Dhabi government’s decision, earlier this year, to open six geographical oil and gas blocks for competitive bidding. Based on existing data from detailed petroleum system studies, seismic surveys, log files and core samples from hundreds of appraisal wells, estimates suggest these new blocks hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas. The first exploration and production licenses are expected to be awarded in the first quarter of 2019.

The licensing strategy represents a major advance in how Abu Dhabi unlocks new opportunities and maximizes value from its hydrocarbon resources. It is also consistent with ADNOC’s approach to expanding its strategic partnerships across all areas of its business. The successful bidders will enter into agreements granting exploration rights and, provided defined targets are achieved in the exploration phase, be granted the opportunity to develop and produce any discoveries with ADNOC, under terms set out in the bidding package.

Industry projections, H.E. Dr Al Jaber highlighted, validate ADNOC’s integrated oil and gas strategy. For the first time, the world is on the verge of consuming 100 million barrels of oil per day, with oil consumption increasing by an additional 10 million barrels per day by 2040, he said. Over the same period, demand for natural gas will increase by 40 percent, while the market for higher-value polymers and petrochemicals will grow by 60 percent.

About ADNOC

ADNOC is a major diversified group of energy and petrochemical companies that produces about 3 million barrels of oil and 10.5 billion cubic feet of raw gas a day. Its integrated upstream, midstream and downstream activities are carried out by 14 specialist subsidiary and joint venture companies. To find out more visit www.adnoc.ae. For further information: media@adnoc.ae.

*Source:

View source version on businesswire.com:https://www.businesswire.com/news/home/20181105005410/en/

CONTACT: ADNOC Group

Sean McCarthy, +971564067996

sean.mccarthy@bm.com

KEYWORD: UNITED ARAB EMIRATES MIDDLE EAST

INDUSTRY KEYWORD: ENERGY OIL/GAS

SOURCE: Abu Dhabi National Oil Company

Copyright Business Wire 2018.

PUB: 11/05/2018 07:02 AM/DISC: 11/05/2018 07:02 AM

http://www.businesswire.com/news/home/20181105005410/en

© 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Odessa, TX

Current Conditions

Sunny
37°
Humidity: 76%
Winds: NE at 6mph
Feels Like: 32°

Your Extended Forecast

Tomorrow

weather
High 57°/Low 37°
Sunny. Highs in the upper 50s and lows in the upper 30s.

wednesday

weather
High 55°/Low 38°
Partly cloudy. Highs in the mid 50s and lows in the upper 30s.

thursday

weather
High 64°/Low 49°
More clouds than sun. Highs in the mid 60s and lows in the upper 40s.
Online Features

Pet Central

pets

Having a pet is a lot of responsibility, and we’ll help by giving you lots of tips and tricks! More >>

Fitness

Fitness

Our fitness articles will help teach you how to work out with gym- and home-based exercises. More >>

Crosswords

Crosswords

Enjoy the crosswords challenge in our free daily puzzles, from the harder Sunday crossword to the quicker daily. More >>

Sudoku

Sudoku

Every Sudoku has a unique solution that can be reached logically. Enter numbers into the blank spaces so that each row, column and 3x3 box contains the numbers 1 to 9. More >>




  • ALL-ACCESS: Subscribe to our e-edition and premium website at myoaoa.com.
    You can read your daily newspaper without taking a walk to the driveway.
    Look back at yesterday's newspaper, or issues from months ago with our archive feature.
    Call circulation at 432-337-7670 to sign up today.