This comes after approval was granted by the Supreme Petroleum Council (SPC), which is the highest governing body of the oil and gas industry in Abu Dhabi. In the statement, ADNOC also announced capital investment growth of US$132.33 billion between 2019 and 2023 and new discoveries of 1 billion bbl of oil.
ADNOC claims that its gas strategy will add potential resources that will enable the UAE to achieve gas self-sufficiency, with the ultimate goal of potentially transitioning into a net gas exporter. In addition to this, the company also announced new gas discoveries totaling 15 trillion ft3. The gas strategy will sustain LNG production to 2040 and allow the company to take a hold of incremental LNG and gas-to-chemicals growth opportunities, where they arise, from the UAE’s dynamic demand-supply position and evolving energy mix.
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “Our historic gas self-sufficiency strategy marks an important new, accelerated phase in the delivery of ADNOC’s 2030 growth strategy. We will continue to unlock and deliver increased and commercially viable production from our oil and gas reserves, in response to the world’s growing demand for energy.
“The incremental increase in our oil production capacity will enable ADNOC to continue to be a reliable and trusted energy supplier that has the flexibility and capacity to respond and capitalise on the forecasted growth in demand for crude.
“At the same time, the substantial investments we will make, in the development of new and undeveloped reservoirs, gas caps and unconventional resources, will ensure we can competitively meet the UAE’s growing demand for power generation and industrial use while maintaining our international commercial commitments and seizing incremental LNG and gas-to-chemicals growth opportunities.”
In the statement, ADNOC claims that its integrated oil and gas strategy underpins its US$45 billion downstream investment plans, announced in May this year. These plans will see the company triple production of petrochemicals to 14.4 million tpy by 2025. In May, ADNOC revealed a blueprint to develop the world’s largest integrated refining and petrochemicals complex in Ruwais, which will allow it to stretch the value of every barrel it produces even further.
According to the statement, the discovery of new oil reserves endorses the Abu Dhabi government’s decision, which was made earlier this year, to open six geographical oil and gas blocks for competitive bidding. Based on existing data from detailed petroleum system studies, seismic surveys, log files and core samples from hundreds of appraisal wells, estimates reportedly suggest that these new blocks hold billions of barrels of oil and trillions of cubic feet of natural gas. ADNOC claims that the first exploration and production licenses are expected to be awarded in 1Q19.
The company claims that the licensing strategy represents a major development in how Abu Dhabi unlocks new opportunities and maximises value from its hydrocarbon resources. It is also aligned with the company’s approach to growing its strategic partnerships across all sectors of its business. The successful bidders will reportedly enter into agreements granting exploration rights and, provided certain targets are reached during the exploration phase, be given the opportunity to develop and produce any discoveries with ADNOC, under terms set out in the bidding package.
H.E. Dr Al Jaber highlighted that industry projections validate the company’s integrated oil and gas strategy. For the first time, the world is about to consume 100 million bpd of oil, with oil consumption growing by a further 10 million bpd by 2040, he said. Over the same period of time, ADNOC claims that demand for natural gas will increase by 40%, while the market for higher-value polymers and petrochemicals will grow by 60%.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/06112018/adnoc-announces-us132-billion-capex-program-integrated-gas-strategy-and-an-increase-in-oil-production/