ADNOC adapting to 'evolving market environment'
The UAE energy major has stated plans to boost its portfolio, offering and particularly the upstream side of its business
The state-owned Abu Dhabi National Oil Company (ADNOC) has announced its objectives to expand business across the full value chain.
In an official press release sent to arabianoilandgas.com, the UAE energy major has stated plans to boost its portfolio, offering and particularly the upstream side of its business, as part of its transformation and growth strategy.
In the upstream segment, ADNOC is adapting to ‘the evolving market environment by maximising operational efficiencies, increasing crude oil production capacity targets, and reducing costs’. ADNOC is also focussing on the application of new and innovative technologies for enhanced oil recovery (EOR).
In the gas business, ADNOC says it will exploit a variety of natural gas sources, including tapping into gas caps and undeveloped deep and sour gas reserves.
In its upstream foray, ADNOC intends to ‘develop and further expand a regional, fully integrated drilling company’. ADNOC also looks to develop upstream concessions with value-added partners that may also seek to strategically partner with ADNOC in other parts of the value chain
ADNOC will seek to capitalise on its success and experience in sour gas development as it explores a potential $20bn investment to develop the Hail, Ghasha, Delma, Nasr and Shuwaihat fields, which could produce 1.2bn standard cubic feet of gas per day (scf/d).
It will also increase production from its Shah field to 1.5bn scf/d and explore commercially sound avenues of developing the sour gas fields of Bab and Buhasa. In addition, the company will deploy innovative technology such as Carbon Capture Utilisation and Storage to replace natural gas with C02 in EOR – thereby liberating gas for other purposes.
In the downstream vertical, ADNOC aims to stretch the margin of each refined barrel of oil and expand petrochemical production from 4.5 to 11.4 mtpa by 2025. It will develop new, high-value products to meet growing demand and increase refining capacity to create new revenue streams.
Historically, ADNOC has been a major player in upstream hydrocarbon production. In the years ahead it will significantly increase its focus and resources in downstream – and particularly in refining.