Abu Dhabi National Oil Company (ADNOC) has unveiled its capital spending plan of $127bn over next five years, from 2022 to 2026, as it increases the country’s hydrocarbon reserves.
The state-owned company announced that it had significantly increased the national reserves by 16 trillion standard cubic feet (scf) of natural gas and four billion stock-tank barrels (STB) of oil.
This increase is attributed to the discovery of recoverable and unconventional oil resources made in 2020. According to estimations, the resources hold approximately 22 billion STB.
This increase brings the country’s hydrocarbon reserves base to 111 billion STB of oil and 289 trillion scf of natural gas.
The capital spending for the period of 2021-25 was approved by Abu Dhabi Crown Prince Sheikh Moahmmed bin Zayed, who chaired the company’s annual board meeting. It represents an increase from the $122bn investment plan announced in 2020.
State-owned oil company UAE said that the investment aims to boost its upstream production and downstream portfolio, while also assisting its low carbon and clean energy businesses.
As part of the plan, ADNOC intends to double the LNG production capacity from six to 12 million tons per annum (MMTPA).
ADNOC also announced that it plans to drive more than $43.6bn (AED160bn) back into the economy through its in-country value (ICV) programme during the five-year period to further stimulate growth and diversification.
Since 2018, ADNOC’s ICV programme has increased the national economy by $28.6bn (AED105bn) and created more than 3,000 jobs.
The company also approved a ‘new energies strategy’, which aims to reduce the firm’s CO₂ footprint, while also capitalising on emerging renewable and hydrogen opportunities.
The government also announced its plans to create a global, clean energy powerhouse to spearhead the drive to achieve net-zero carbon by 2050.
By 2030, ADNOC aims to achieve a five million barrels per day (mmbpd) production capacity and contribute to the increasing reserves.
UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Dr Sultan Ahmed Al Jaber said: “The Board of Directors’ approval of ADNOC’s Business Plan and New Energies’ strategy marks an important phase in our ongoing journey to future-proof our business model.
“We are confidently moving forward to deliver upstream growth, accelerate the UAE’s industrial development through our downstream expansion, build our trading capabilities, and advance our position in hydrogen and clean energy.”
Recently, the ADNOC artificial intelligence (AI) unit, AIQ, and Baker Hughes collaborated to help improve the efficiency of upstream oil and gas operations.