ADNOC board approves Dhs466bn spending plan for 2022-26

The Board of Directors of Abu Dhabi National Oil Company, under the chairmanship of Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces approved ADNOC’s five year business plan and capital expenditure (CAPEX) of Dhs466bn ($127bn) for 2022-2026 out of which Dhs160bn ($43.6bn) will be spent on local projects.

ADNOC also announced a significant increase in national reserves of 4 billion stock tank barrels (STB) of oil and 16 trillion standard cubic feet (TSCF) of natural gas. These additional reserves increase the UAE’s hydrocarbon reserves base to 111 billion STB of oil and 289 TSCF of natural gas, reinforcing the country’s position in global rankings as the holder of the sixth-largest oil reserves and the seventh-largest gas reserves.

I met with the ADNOC Board of Directors at Expo 2020 Dubai & approved the company’s updated strategy. Through its sustained investment in people & commitment to reliability & innovation, ADNOC plays a vital role in the global energy sector & in the strength of the UAE economy. pic.twitter.com/CVFTvZCv9h

— محمد بن زايد (@MohamedBinZayed) December 1, 2021

Commenting on the achievements, Sheikh Mohamed bin said the UAE will continue to responsibly unlock its hydrocarbon resources to drive progress and contribute to global energy security.

As ADNOC unlocks the UAE’s lower carbon oil and gas resources, it is ensuring greater economic value is retained in the local economy through its In-Country Value (ICV) programme which is nurturing new business opportunities for the private sector and creating jobs opportunities for UAE Nationals.

Since ADNOC launched the programme in January 2018, it has driven Dhs105bn ($28.6bn) back into the UAE economy and created over 3,000 jobs for UAE Nationals in the private sector, including over 1,000 jobs this year.

The board also approved ADNOC’s New Energies Strategy aimed at further reducing its carbon footprint and enabling it to capitalise on opportunities in renewable energy, hydrogen and other lower carbon fuels.

The board also highlighted the progress of the TA’ZIZ Industrial ecosystem in Ruwais and the strong local and international investor interest received, particularly in the TA’ZIZ Industrial Chemicals Zone.

The Chemicals Zone, ADNOC’s joint venture with Abu Dhabi Developmental Holding Company (ADQ), is a key pillar of ADNOC’s downstream and industrial expansion strategy and is helping to accelerate the development of Abu Dhabi’s petrochemicals and manufacturing industry.

The board further discussed recent developments in oil and gas markets and noted that ADNOC continues to remain agile, resilient and able to quickly adapt to market conditions.

Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC managing director and group CEO, said: “We have laid a solid foundation to ensure ADNOC continues to drive greater and more sustainable value for the UAE during the energy transition. As we build on this foundation, we are capitalising on the many commercial opportunities in this era while strengthening our position as one of the lowest cost and lowest carbon oil and gas producers in the world.

The increase in oil and gas national reserves was driven by ADNOC’s continuous appraisal activities and enabled by best reservoir management practices across its onshore and offshore portfolio as well as leveraging advanced tailored technologies. In addition, maturing development plans towards achieving ADNOC’s 5 million barrels per day (mmbpd) production capacity target by 2030 contributed to the substantial reserves increase.

Around half of the newly added 4 billion STB oil national reserves are Murban-grade crude, Abu Dhabi’s highly sought-after lower-carbon crude grade which has been successfully trading on the ICE Futures Abu Dhabi (IFAD) commodities exchange since March 2021.

The latest increase in national reserves follows ADNOC’s announcement last year of the discovery of recoverable unconventional oil resources estimated at 22 billion STB and an increase in conventional oil national reserves of 2 billion STB.

Also, in 2019, ADNOC announced national reserves increases of 7 billion STB of oil and 58 TSCF of conventional gas and the discovery of unconventional recoverable gas resources totaling 160 TSCF.

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