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December 15, 2021updated 28 Dec 2021 10:06am

ADNOC announces ‘significant’ oil discovery

The discovery comes as the UAE capital looks to expand its oil and gas exploration, with an aim of reaching 5 million barrels of oil per day.

By Scarlett Evans

The Abu Dhabi National Oil Company (ADNOC) has announced a “significant” discovery of conventional oil, condensate, and gas equivalent of up to one billion barrels of oil.

The discovery was made in an exploration well in Abu Dhabi’s Onshore Block 4 Concession, which is operated by Japan’s INPEX/JODCO.

S&P Global Platts reported that the latest find could offer recoverable reserves of around 480 million barrels of oil, citing an INPEX spokesperson as a source.

ADNOC said that it was “delighted” by the discovery, which marks the group’s first find from the site, as well as from a new geological formation. The exploration well was originally drilled following a 3D seismic survey by ADNOC to investigate potential onshore and offshore assets and was carried out between May and August this year.

“This achievement underscores how ADNOC’s accelerated exploration and development program is unlocking future value for the UAE,” ADNOC wrote.

“The next step is to appraise and further quantify these resources as well as to explore the promising potential in and around Onshore Block 4,” the group added.

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INPEX has said that it will conduct further analysis of the discovery, pursuing the potential development of crude oil and natural gas resources at the site. Japan is currently the world’s top importer of gas from the UAE capital, with INPEX investing up to $176m into exploring oil and gas opportunities in the Block 4 Concession – a site that stretches over 6,116km up to the capital’s border with Dubai.

ADNOC is a major driver of growth in Abu Dhabi’s oil and gas sector, reportedly producing more than 3.5 million barrels of oil per day with the intention of reaching 5 million barrels per day by 2030, as well as enabling gas self-sufficiency for the UAE. In pursuit of this goal, ADNOC has been injecting a new wave of investment into exploration, with procurement awards worth just under $6bn pledged last month to accelerate drilling growth.

The UAE captial’s bid for hydrocarbon expansion comes alongside its commitment to reduce power-related emissions by 50% over the next decade, as well as bump up renewable capacity to 8.8GW by 2025. The pledge was announced at this year’s COP26.

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