Abu Dhabi National Oil Co (ADNOC) will spend more than Dhs400bn ($109bn) in the next five years, which will include boosting gas output and investing in international downstream activities, ADNOC said on Monday.
Abu Dhabi’s Supreme Petroleum Council (SPC) has approved the strategy, state-owned ADNOC said in a statement.
To boost gas output, the firm said it would expand production of sour gas, which typically has high levels of hydrogen sulphide that needs to be removed.
ADNOC said it was exploring and appraising deposits in tight reservoirs, a term that refers to gas found in rocks of low permeability and porosity that typically need fracking to recover. These deposits would be developed in the next five years, it said.
It would also expand its refining, gas processing and petrochemicals business portfolio at home and invest international downstream activities, it said without giving details.
ADNOC was also on track to expand oil production capacity to 3.5 million barrels per day (bpd) by the end of 2018, it said.
“Enhanced efficiencies have brought ADNOC’s leading low production cost down even further, a factor driving interest in the upcoming offshore concessions, which have attracted more than 14 potential partners from across the world,” ADNOC said.
“ADNOC will expand its portfolio through strategic international downstream investments and develop Abu Dhabi’s unconventional gas resources,” Crown Prince Sheikh Mohammed bin Zayed al-Nahyan said on Twitter after the meeting of the SPC.
ADNOC has embarked on plans to privatise its services units, venture into oil trading and expand partnerships with strategic investors, Chief Executive Sultan al-Jaber told Reuters last week.
Earlier this week the company’s distribution unit set an indicative price range of between Dhs2.35 ($0.6400) and Dhs2.95 ($0.8034) for its initial public offering (IPO) next year that could raise as much as $2bn.
ADNOC is selling a minimum of 10 per cent, or 1.25 billion shares, and a maximum of 20 per cent, or 2.5 billion shares, in the IPO of its unit.