Abu Dhabi’s Supreme Petroleum Council has approved a 2030 strategy, five-year business plan and operational budget at state oil firm ADNOC with the intention of increasing oil, gas and petrochemical production and boosting efficiency.
The new strategy focuses on creating more profitable upstream and downstream operations and ensuring a sustainable supply of gas to Abu Dhabi.
It will enable ADNOC to “maximise value by leveraging synergies, implementing efficiencies and making targeted investments in new growth opportunities, according to a press release.
“We will make strategic, commercially viable and targeted investments aimed at building on our legacy of success and ensuring our continued growth. In parallel, we will maintain our efforts to improve the organisation’s efficiencies and identify opportunities to further optimise our value chain,” Said Dr Sultan Al Jaber, minister of state and ADNOC group CEO.
Among the more imminent objectives of the plan are to achieve a production target of 3.5 million bpd of oil by 2018 through a 400,000 bpd production increase.
The company also said it will focus on new technologies to enable enhanced oil recovery and the tapping of additional sour gas sources.
Increased sour gas production will make ADNOC one of the world’s largest sulphur producers, according to the company.
It said it would work closely with phosphate markets and support the local sulphur products industry.
ADNOC has also committed to provide enough gas to meet Abu Dhabi’s demand and has begun a gas price restructuring exercise.
For the downstream business the company said it would integrate its refining and petrochemical units to boost profitability.
The plans will see ADNOC grow its domestic refining and petrochemical capacity through investment in new projects including gasoline and aromatics productions and additional polyolefin capacity.
The company said it would boost gasoline production to 10.2 million tonnes per annum (mtpa) to maintain Abu Dhabi’s self efficiency.
New gasoline and aromatics projects will add 4.2 mpta of supply and 1.4 mtpa of aromatics to supply in 2022.
Petrochemicals productions will grow from 4.5 mtpa in 2016 to 11.4 mtpa by 2025 with additional polyolefin capacity and new petrochemical products.
Further efficiency will be sought through group wide procurement with one single entity for registration and pre-qualification to eliminate repeated tendering for the same goods and services.
It also said it would introduce a new score card system based on key performance indicators “to ensure meritocratic and fair employee performance management”.
The new strategy was announced following the inauguration of ADNOC’s new headquarters by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Vice-Chairman of the SPC.