São Paulo – The Abu Dhabi National Oil Company (ADNOC) is planning to step up its oil and gas output and to invest USD 132 billion in the next five years. Emirates News Agency (WAM) broke the news this Monday (5) quoting information released by the company following the approval of its strategy by the Abu Dhabi Supreme Oil Council on Sunday (4).
ADNOC announced the discovery of gas reserves amounting to 15 trillion cubic feet. It believes its investment plan will enable the United Arab Emirates to become self-sufficient in gas production, as well as a net exporter of the product.
New oil finds amount to 1 billion barrels. The plan is to have oil output reach 4 million barrels per day by the end of 2020, before reaching 5 million bpd by 2030. At this time, the company produces 3 million bpd, according to its website.
The new strategy that has been approved provides for integration of its oil and gas departments, enabling ADNOC to triple petrochemicals production to 14.4 million tons per year by 2025. Last May saw the company announce plans to create the largest integrated refining/petrochemical complex in the world, in a drive to sell higher value-added goods. Some of the gas produced will be used in the refining process.
The company said in a press release that the discovery of new reserves endorses the Abu Dhabi government’s decision earlier this year to float tenders for exploration of six oil and gas blocks. Based on seismic studies, records and samples from the oil wells at hand, estimates suggest that these blocks contain billions of barrels of oil and several trillion cubic feet of gas, according to ADNOC. The first exploration and production licenses are expected to be issued in Q1 next year.
““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,” a press release quoted ADNOC CEO Sultan Ahmed Al Jaber as saying.
He noted that the world is “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.” In the meantime, according to Jaber, “demand for natural gas will increase by 40%, while the market for higher-value polymers and petrochemicals will grow by 60%.”
The Abu Dhabi Supreme Oil Council, which approved ADNOC’s strategy, is the emirate’s oil and gas industry regulator. It is tasked with formulating, approving and supervising policy implementation to make sure that goals are met.
Translated by Gabriel Pomerancblum
