Adnoc’s board okays Dh550b budget for next five years

UAE President chairs Adnoc board of directors meeting; approves 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 President, His Highness Sheikh Mohamed bin Zayed Al Nahyan tours Abu Dhabi National Oil Company (Adnoc) headquarters, after a Supreme Petroleum Council meeting. Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology Group CEO of Adnoc and Chairman of Masdar (second right), Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office (third right), and other top officials were also present. — Wam
The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan tours Abu Dhabi National Oil Company (Adnoc) headquarters, after a Supreme Petroleum Council meeting. Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology Group CEO of Adnoc and Chairman of Masdar (second right), Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office (third right), and other top officials were also present. — Wam
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A Staff Reporter

Published: Mon 28 Nov 2022, 7:20 PM

Last updated: Mon 28 Nov 2022, 9:20 PM

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 President, His Highness Sheikh Mohamed bin Zayed Al Nahyan chairs a Supreme Petroleum Council meeting at the Abu Dhabi National Oil Company (Adnoc) headquarters. — Wam
The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan chairs a Supreme Petroleum Council meeting at the Abu Dhabi National Oil Company (Adnoc) headquarters. — Wam

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.

The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan tours Abu Dhabi National Oil Company (Adnoc) headquarters, after a Supreme Petroleum Council meeting. — Wam
The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan tours Abu Dhabi National Oil Company (Adnoc) headquarters, after a Supreme Petroleum Council meeting. — Wam

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.

The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan chairs a Supreme Petroleum Council meeting at the Abu Dhabi National Oil Company (Adnoc) headquarters. — Wam
The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan chairs a Supreme Petroleum Council meeting at the Abu Dhabi National Oil Company (Adnoc) headquarters. — Wam

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.

The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan tours Abu Dhabi National Oil Company (Adnoc) headquarters, after a Supreme Petroleum Council meeting. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office, also seen in the picture. — Wam
The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan tours Abu Dhabi National Oil Company (Adnoc) headquarters, after a Supreme Petroleum Council meeting. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office, also seen in the picture. — Wam

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.

ABU DHABI, UNITED ARAB EMIRATES -November 28, 2022: HH Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates (L), tours Abu Dhabi National Oil Company (ADNOC) Headquarters, after a Supreme Petroleum Council meeting. ( Hamad Al Kaabi /  UAE Presidential Court )---
ABU DHABI, UNITED ARAB EMIRATES -November 28, 2022: HH Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates (L), tours Abu Dhabi National Oil Company (ADNOC) Headquarters, after a Supreme Petroleum Council meeting. ( Hamad Al Kaabi / UAE Presidential Court )---

President praises Adnoc

During the meeting, which was held at Adnoc headquarters, Sheikh Mohamed bin Zayed praised Adnoc’s steps to further reduce its carbon footprint as it expands its operations to meet rising global energy demand. He noted Adnoc’s comprehensive approach to sustainability is testamanent to the UAE’s commitment to remaining a responsible global energy provider and to enabling a more sustainable future.

Sheikh Mohamed bin Zayed underlined Adnoc’s important role as a primary catalyst for the UAE’s growth and diversification and commended the company for maximising value for the nation and creating new economic and industrial opportunities for the private sector. He praised Adnoc’s efforts to drive industrial growth through its In-Country Value (ICV) program and its support for the ‘Make it in the Emirates’ initiative.

Sheikh Mohamed met a group of Adnoc youth employees and was briefed on the company’s transformation journey. Adnoc’s transformation is enabled by its Accelerate 100X program aimed at capitaliding on the evolving energy landscape, future-proofing the company during the energy transition and maximising value for the UAE.

Other board members that attended the meeting were Sheikh Khaled bin Mohamed bin Zayed, Deputy National Security Adviser, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office; Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure; Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO; Ahmed Ali Al Sayegh, Minister of State; Dr Ahmed Mubarak Ali Al Mazrouei, Chairman of the Abu Dhabi Executive Council Office; Khaldoon Khalifa Al Mubarak, Chairman of the board of directors of Emirates Nuclear Energy Corporation (ENEC); Awaidha Murshed Al Marar, Chairman of the Abu Dhabi Department of Energy (DoE); and Jassem Mohammed Al Zaabi.

Key Takeaways

> UAE President chairs Adnoc board of directors meeting and approves five-year business plan

> 5 million barrels per day production capacity target accelerated to 2027

> The UAE’s reserves increase to 113 billion STB of oil and 290 trillion SCF of gas

> Adnoc’s gas processing and LNG businesses will be consolidated to create Adnoc Gas

> New entity will float a minority stake on ADX next year

> Capex of Dh550 billion ($150 billion) for 2023-27 approved

> Dh35 billion ($9.54 billion) driven back into the local economy and 2,000 jobs created for UAE Nationals in 2022 through Adnoc’s ICV programme

> More than 5,000 UAE Nationals employed in the private sector since the ICV program was initiated

> Adnoc to pursue a Net Zero by 2050 ambition to support UAE’s drive towards net zero carbon

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


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