Adnoc’s board okays Dh550b budget for next five years

Adnoc on Monday approved a plan to bring forward the company’s five million barrels per day oil production capacity expansion to 2027 as part of the accelerated growth strategy.

The company’s board of directors previously set 2030 target for five million barrels per day production capacity.

The board, which met under the chairmanship of The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan, approved Dh550 billion budget for the next five years to ensure sustainability of the company’s growth.

In a statement, the Abu Dhabi-based group said five-year business plan and Dh550 billion ($150 billion) capital expenditures for 2023-27 was approved to enable the accelerated growth strategy of the company.

“As part of this plan, Adnoc aims to drive Dh175 billion ($48 billion) back into the UAE economy through its ICV programme,” the statement said.

The baord also approved the creation of Adnoc Gas and plans to float a minority stake in the new company on the Abu Dhabi Securities Exchange (ADX) in 2023.

Adnoc’s ICV programme has driven over Dh35 billion ($9.54 billion) back into the nation’s economy this year and enabled 2,000 UAE Nationals to be employed in Adnoc’s supply chain.

“These achievements bring the total value driven back into the economy to Dh140 billion ($38 billion) since the program was launched in 2018. In addition, a total of 5,000 UAE Nationals have been employed in Adnoc’s supply chain through the programme since it was launched,” the statement said.

The Abu Dhabi-based energy giant is also supporting the ‘Make it in the Emirates’ initiative and has signed agreements for local manufacturing opportunities worth over Dh25 billion ($6.8 billion) with UAE and international companies this year.

“Adnoc delivers on its target to locally manufacture over 100 products in its procurement pipeline worth Dh70 billion ($19 billion) by 2030,” it said.

Reducing carbon footprint

The President praised the group’s steps to further reduce its carbon footprint as it expands its operations to meet rising global energy demand. He directed Adnoc to pursue a ‘Net Zero by 2050 ambition’ to support the UAE’s drive towards net zero carbon.

“The accelerated production capacity target is underpinned by the UAE’s robust hydrocarbon reserves, which have increased by two billion stock tank barrels (STB) of oil and one trillion standard cubic feet (TSCF) of natural gas this year. These additional reserves increase the UAE’s reserves base to 113 billion STB of oil and 290 TSCF of natural gas, reinforcing the country’s position in global rankings as the custodian of the sixth-largest oil reserves and the seventh-largest gas reserves,” according to the statement.

Adnoc will also create a low carbon solutions and international growth vertical focused on new energies, gas, LNG and chemicals. The board directed the firm to pursue a net zero by 2050 ambition to support the UAE’s drive towards net zero carbon.

Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, said Adnoc is well-positioned for new phase of accelerated growth across the energy value chain.

“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.

He said the world needs maximum energy, minimum emissions and it needs all the energy solutions if “we are to ensure global energy security”.

“Adnoc is committed to making today’s energy cleaner while investing in the clean energies of tomorrow to strengthen our position as a reliable and responsible energy provider. As we deliver on these objectives, we will continue to drive greater and more sustainable value for the UAE, create opportunities for the private sector to benefit from Adnoc’s growth and enable more skilled job opportunities for UAE Nationals,” the minister said.

Adnoc’s Net Zero by 2050 ambition covers its operational Scope 1 and Scope 2 greenhouse gas emissions (GHG). This ambition is underpinned by a continued focus on key decarbonisation levers of energy efficiency and operational excellence across the value chain, large scale implementation of carbon capture, utilisation and storage (CCUS) and the use of renewable energy sources.

President praises Adnoc

> Adnoc signed multiple agreements this year to drive its target to locally manufacture over 100 products worth Dh70 billion ($19 billion)