Abu Dhabi’s Supreme Petroleum Council (SPC) today approved a $132 billion (AED486bn) capital investment plan to support Abu Dhabi National Oil Company’s (ADNOC) five-year growth plan.
In a series of Tweets, Sheikh Mohamed, Abu Dhabi Crown Prince, said with the blessing of UAE President Sheikh Khalifa, the council approved the planned investment, which includes a gas strategy to become self-sufficient, with the potential to become a net gas exporter.
ADNOC will increase its oil production capacity to 4 million barrels per day (mmbpd) at the end of 2020 and 5mmbpd by 2030.
At its meeting, the SPC announced new discoveries of gas in place, totalling 15 trillion standard cubic feet. It also announced new discoveries of 1 billion barrels of oil in place.
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.
Dr Sultan Ahmed Al Jaber, Minister of State and ADNOC Group CEO, said the strategy “will ensure we maximise value from all our resources to enable the UAE’s socio-economic ambitions”.
“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,” he said.
“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 capitalise 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 responding to domestic demand, we will maintain our international commercial commitments and seize incremental LNG and gas-to-chemicals growth opportunities,” he added.
ADNOC’s integrated oil and gas strategy underpins its $45bn (AED165bn) downstream investment plans announced in May, which will see the company triple production of petrochemicals to 14.4 million tons per annum by 2025 and create over 15,000 jobs.
ADNOC also 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. In addition to being used for power generation and other industrial uses, natural gas is the fuel that powers most chemical and refining processes.
The SPC is the highest governing body of the oil and gas industry in Abu Dhabi. The Council formulates, approves and oversees the implementation of Abu Dhabi’s petroleum policy and follows up its implementation across all areas of the petroleum industry to ensure that the set goals are achieved. More
By Neil Halligan ARABIAN BUSINESS