The new company will be a consolidated entity that will manage ADNOC Gas Processing and ADNOC LNG operations, maintenance, and marketing. An IPO of a minority stake in the newly created company will be laid on the ADX, subject to applicable regulations.
The annual meeting of the Abu Dhabi National Oil Company (ADNOC), held on Monday, November 28, at the headquarters of Abu Dhabi, approved a 550 billion Dirham ($150Bn) budget to set up a gas subsidiary. The budget is to be spread across five years as ADNOC prepares for the commencement of operations of the flagship company ‘ADNOC Gas’ and lists its shares in the Abu Dhabi Securities Exchange (ADX) in 2023.
The Board of Directors of ADNOC, in the meeting presided over by the president of UAE, Sheikh Mohamed bin Zayed Al Nahyan, endorsed the creation of the gas processing and marketing company to begin its operations from January 1, 2023. The new company will be a consolidated entity that will manage ADNOC Gas Processing and ADNOC LNG operations, maintenance, and marketing. An IPO of a minority stake in the newly created company will be laid on the ADX, subject to applicable regulations.
The five-year business plan, in addition to the capital expenditure of AED 550 billion for 2023-2027, was undertaken to boost the growth strategy across its value chains to meet rising energy demands more responsibly and support global energy security. Through this five-year plan, ADNOC aims to fill in AED 175 billion ($48bn) back into the economy of UAE. in 2022, the In-Country Value (ICV) program of ADNOC has pumped in AED 35 billion ($9.54bn) back into the Emirates economy making the total pump of AED 140 billion ($38bn) since the program commenced in 2018.
The board directed ADNOC to aspire for a ‘net zero by 2050’ goal to back up the UAE Net Zero by 2050 initiative. In part to this strategy, the company seeks to establish new low-carbon solutions and aid international growth on new energy, has, LNG and chemicals.
President Sheikh Mohamed has notably mentioned ADNOC’s efforts to reduce its carbon footprint as it plans to expand operations to match the increasing energy demand. Minister of Industry and Advanced Technology and ADNOC managing director and group chief executive Dr. Sultan Al Jaber mentioned that the company is well positioned for this upcoming phase to help accelerate growth over the energy value chain. The ‘Net Zero by 2050’ lays light on sustainability being at the forefront of growth.
The annual meeting endorsed the plan for expansion of the production capacity to 5 million bottles of oil per day by 2027, from the previous target of 2030, a part of the accelerated growth strategy. This target will help the company gain greater flexibility to meet the surging energy demands as it produces some of the world’s least carbon-intensive oil.
The hydrocarbon reserves of the Emirates have increased by 2 billion stock tank barrels of oil and 1 trillion standard cubic feet of natural gas this year, increasing the reserve base to 113 billion stock tank barrels of oil and 290 trillion standard cubic feet of natural gas. The country stands as the sixth-largest custodian of oil reserves and the seventh-largest stockholder of gas reserves.
Adnoc is aiding the ‘Make It In The Emirates’ initiative by signing agreements for manufacturing opportunities locally worth more than DH25 billion with UAE and some international companies for 2022, aiming to manufacture more than 100 products in the procurement pipeline worth DH70 billion by 2030.
The oil company has also planned to cut 5% of the crude oil supply for December to some term-lifters in Asia. It will provide contractual volumes again in January. This cut is a result of OPEC trimming output by 2 million barrels per day from November, a trick to increase oil prices.
Currently, the world has a major need for maximum energy, but minimum emissions and robust energy solutions are required to ensure energy security. Adnoc perpetrates making energy cleaner for today as it invests in cleaner energy for the years to come. They aim to become a reliable and responsible energy provider, giving opportunities to private sectors to benefit from their growth and creating more skilled job opportunities for the people of UAE.