Adnoc has brought forwards its plans to reach 5 million barrels per day of production, while boosting reserves and setting out plans for an IPO of a new gas unit.
The state-owned Abu Dhabi NOC had set the target of reaching 5mn bpd by 2030. At a board meeting today, chaired by United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan, it brought this forward to 2027.
The company said this new target would give it greater flexibility to meet rising global demand.
Underpinning this move are more reserves. Adnoc has boosted these by 2 billion stock tank barrels of oil and 1 trillion cubic feet of gas this year. This brings the UAE’s reserve base to 113bn barrels and 290 tcf of gas.
At the meeting, the board also approved plans for Adnoc Gas, as of January 1, 2023. This company will roll up Adnoc Gas Processing and Adnoc LNG into one entity.
It will hold an IPO of Adnoc Gas in 2023. It will carry this out on the Abu Dhabi Securities Exchange (ADX), selling down a minority stake in the business.
Adnoc Gas will not be the only new unit. The company also intends to launch a new low carbon and international growth unit. This will focus on new energy, gas, LNG and chemicals.
The meeting also approved a five-year business plan and capital expenditure. For the period of 2023 to 2027, it will spend $150bn. Of this, $48bn should go back into the local economy via the in-country value (ICV) programme.
Adnoc spent $9.54bn this year via its ICV programme, bringing the total since it began in 2018 to $38bn.
Adnoc head Sultan Al Jaber said the company was well positioned to meet the new plans for accelerated growth.
“Through our Net Zero by 2050 ambition, we are placing sustainability at the centre of our growth, building on the legacy of the Founding Father of the UAE, His Highness Sheikh Zayed bin Sultan Al Nahyan, who laid the foundation for ADNOC to become one of the least carbon intensive oil and gas producers in the world.”
Adnoc intends to make “today’s energy cleaner while investing in the clean energies of tomorrow to strengthen our position as a reliable and responsible energy provider”, he continued.