ADNOC is to accelerate delivery of its new integrated gas strategy, as well as its plans to increase its oil production capacity to 4 million barrels per day by 2020, with H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO signalling that ADNOC would be making additional strategic announcements in the coming weeks, including new partners for the Ghasha concession, which is ADNOC’s offshore ultra-sour gas mega project, consisting of Hail, Ghasha, Dalma and other offshore fields.
Other upcoming announcements will centre on the Abu Dhabi government’s historic decision, earlier this year, to open six oil and gas blocks for competitive bidding. The blocks potentially hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas. The first exploration and production licenses are expected to be awarded in the first quarter of 2019.
The announcements will build on Abu Dhabi’s Supreme Petroleum Council’s (SPC) approval of ADNOC’s plans to appraise and develop new gas resources that will enable the UAE to achieve gas self-sufficiency, with the aim of transitioning to a net gas exporter, sustaining LNG production to 2040. The SPC also approved an increase in ADNOC’s oil production capacity to 4 million barrels per day by the end of 2020 and 5 million barrels per day by 2030, as well as ADNOC’s new five-year business plan and capital investment growth of AED 486bn ($132.33bn) between 2019-2023.
In addition to the strategic partnership announcements with Total and Eni and MoU’s with Mubadala and Saudi Aramco, ADNOC also announced an AED 5.1bn ($1.4bn) investment to upgrade and expand its Bu Hasa field, which will increase crude oil production capacity to 650,000 barrels per day (bpd). It also announced a framework agreement with the Indian Strategic Petroleum Reserves Ltd. (ISPRL) to explore the possibility of storing ADNOC crude oil at ISPRL’s underground oil storage facility, at Padur, in Karnataka. The agreement builds on an earlier agreement to store 5.86 million barrels of ADNOC crude oil at another ISPRL underground facility, in Mangalore.
At this year’s ADIPEC, ADNOC also announced its intention to extend to 2040 its gas supply agreement with ADNOC LNG, in coordination with ADNOC LNG’s joint venture partners, Mitsui, BP and Total. And on the sidelines of the conference, ADNOC hosted at its HQ senior oil, gas and technology leaders at the inaugural ADNOC Artificial Intelligence (AI) Forum to discuss the rise of AI and how, collectively, the oil and gas industry can accelerate AI advancements to unlock new value from it oil and gas resources. It also updated over 800 ADIPEC attendees on its new integrated gas strategy and downstream growth plans, at a specially convened Gas, Refining and Petrochemicals Forum.
For more information visit www.adnoc.ae
23rd November 2018
