ADNOC’s agility and resilience lauded by the Abu Dhabi Crown Prince at SPC Meeting ADNOC
SPC announces the discovery of recoverable unconventional oil resources estimated at 22bn stock tank barrels
A
bu Dhabi’s Supreme Petroleum Council (SPC) announced the discovery of substantial recoverable unconventional oil resources located onshore, estimated at 22bn stock tank barrels (STB), and an increase in conventional oil reserves of 2bn STB in the Emirate (Abu Dhabi). The announcements were made following the recent SPC meeting presided over by HH Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates (UAE) Armed Forces and Vice-Chairman, SPC. At the meeting, the SPC approved ADNOC’s capital expenditure (CAPEX) plan of AED 448bn (US$ 122bn) for 2021-2025 to enable smart growth. As part of this plan, ADNOC aims to drive over AED160bn (US$ 43.6bn) back into the United Arab Emirates’ (UAE) economy between 2021 and 2025. The inflow to the local economy will be enabled by ADNOC’s In-Country Value (ICV) Programme which is aimed at nurturing new local and international partnerships and business opportunities for the private sector, fostering socioeconomic growth and creating job opportunities for Emiratis. 56 DECEMBER 2020
Green light In addition, the SPC gave approval for ADNOC to award exploration blocks in Abu Dhabi’s second competitive block bid round which was launched in 2019, it was revealed via a press communiqué. The SPC also reviewed the transformation in ADNOC’s Marketing, Supply and Trading (MS&T) Directorate, which has evolved to offer customers a broader service, while further stretching the value from every barrel that ADNOC produces, refines and sells. The directorate has become a more integrated shipping and logistics, storage and trading focused entity, establishing two new trading companies – ADNOC Trading (AT) and ADNOC Global Trading (AGT) – to help deliver its mandate. The SPC also reviewed ADNOC and ADQ’s recently announced joint venture, TA’ZIZ, established to fund and develop chemicals projects within the Ruwais Derivatives Park. ADNOC and ADQ, through TA’ZIZ, are setting the stage for the UAE’s next generation of technology-driven growth and helping to advance the UAE post-Covid economic recovery. Commenting on ADNOC’s discovery of onshore unconventional oil resources and an increase in its conventional oil reserves, HH Sheikh Mohamed Bin Zayed said the achievement is a testament to ADNOC’s relentless efforts to unlock and maximize
value from the UAE’s hydrocarbon reserves for the benefit of the nation. “Following the SPC’s approval of ADNOC’s CAPEX, we are well-positioned to continue driving long-term and sustainable value for the UAE while creating opportunities for local businesses and private-sector jobs for Emiratis through our in-country value target,”affirmed HE Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO. ADNOC’s CAPEX plan will enable it to drive upstream growth, progress downstream expansion and further strengthen the company’s marketing and trading capabilities to ensure it maintains its competitiveness and industry leadership position over the next fifty years.
Downstream expansion ADNOC’s downstream expansion continues to prioritize the transformation of Ruwais into a globally competitive chemicals and industrial hub, leveraging close geographic proximity to fast-growing global demand centres, a competitive feedstock position, Abu Dhabi’s attractive fiscal and regulatory environment, and an integrated utilities, infrastructure and services offer to drive accelerated FDI inflows over the long term.
