Adnoc announces three new oil discoveries

Abu Dhabi National Oil Company (Adnoc) on Thursday announced three oil discoveries that will add more than 650 million barrels of oil to the country’s hydrocarbon reserves.

In a statement, the Abu Dhabi-based group said the 500 million barrels of oil were discovered at Bu Hasa, Abu Dhabi’s biggest onshore field, with a crude oil production capacity of 650,000 barrels per day (bpd).

The second oil find was in Abu Dhabi’s Onshore Block 3, operated by Occidental, with around 100 million barrels of oil in place.

“In the third discovery, around 50 million barrels of light and sweet Murban-quality crude were found in Al Dhafra Petroleum Concession,” according to the Adnoc statement.

Adnoc produces almost all of the UAE’s oil and is spending billions of dollars on multiple development projects as it aims to expand its crude output capacity to five million barrels per day (bpd) by 2030, up from the existing four million bpd.

Energy analysts and market experts said these additional reserves will be ‘a sizeable boost’ to the UAE’s hydrocarbon reserves base standing well above 111 billion barrels of oil and 289 trillion standard cf of natural gas.

Earlier this year, Adnoc had announced a sizeable gas discovery in the Offshore Block 2 exploration concession operated by Italy’s Eni. Adnoc had said that the interim results from the block’s first exploration well indicated between 1.5 trillion and 2 trillion cubic feet of raw gas in place in multiple good quality reservoirs of the Jurassic exploration targets.

In December last, there was confirmation of a discovery of up to one billion barrels of oil equivalent (BBOE) at Onshore Block 4 Exploration Concession, which is operated by the Japanese combine INPEX/JODCO (Japan Oil Development Company).

Adnoc board reviews strategic targets

The oil discoveries were disclosed at the Adnoc board of directors meeting chaired by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and Chairman of the Abu Dhabi Executive Office.

During the meeting, held at Adnoc headquarters in Abu Dhabi, Sheikh Khaled reviewed Adnoc’s performance and strategic targets and commended the company’s expanded approach to strategic partnerships, which have helped lead to new discoveries of oil, including a new find at Bu Hasa, Abu Dhabi’s biggest onshore field with a crude oil production capacity of 650,000 barrels per day (mbpd).

“The 500 million barrels of oil discovered from an exploration well in the Bu Hasa field has unlocked a new formation within the field, offering substantial additional premium-grade Murban oil resources. Bu Hasa is part of the Adnoc Onshore Concession and is operated by Adnoc Onshore,” according to the statement issued by Adnoc.

In Abu Dhabi’s Onshore Block 3, operated by Occidental, around 100 million barrels of oil in place were discovered, marking the second oil find in this concession. Occidental was awarded the exploration rights for Onshore Block 3 in early 2019.

“Around 50 million barrels of light and sweet Murban-quality crude was also discovered in the Al Dhafra Petroleum Concession, operated by Al Dhafra Petroleum, a joint venture between Adnoc, the Korea National Oil Company (KNOC) and GS Energy,” the statement said.

Adnoc spending

Under the five-year business plan, Adnoc will be spending Dh466 billion ($127 billion) to expand its upstream production capacity and downstream portfolio, as well as its low carbon fuels business and clean energy ambitions. The Adnoc’s five-year business plan approved in December 2021 and will be implemented during the 2022 and 2026.

The company’s plans to drive more than Dh160 billion back into the UAE economy over the next five years through its ICV programme will help grow and diversify the economy and support the objectives of the UAE’s ‘Principles of the 50’. Since 2018, Adnoc has driven Dh105 billion back into the UAE economy and created more than 3,000 jobs for UAE nationals in the private sector, including 1,000-plus jobs in 2021.

UAE a reliable energy supplier

Sheikh Khaled commended Adnoc for its collaborative approach and noted that the company and its partners would ensure that the UAE remains a reliable supplier of some of the least carbon-intensive oil in the world for decades to come.

In line with Asnoc’s successful value creation strategy, Sheikh Khaled praised Adnoc’s strengthening of UAE capital markets through its intention to float 10 per cent of Borouge, Aadnoc’s world-leading petrochemicals company on the Abu Dhabi Securities Exchange (ADX), as the company continues to grow and diversify the UAE economy.

Explore new partnerships

Looking to the future, Sheikh Khaled also gave directives to explore new clean energy partnerships, including clean hydrogen, as part of the company’s ambitious growth plans in the field, and to help support the energy transition.

Under the guidance of Sheikh Khaled, the executive committee is providing strategic direction for Adnoc as it delivers on its 2030 strategy and enables economic growth in support of the UAE’s ‘Principles of the 50’. Over the course of the year, the Executive Committee meets to review Adnoc’s progress against its strategic and financial targets as well as its operational performance.

Other members that attended the meeting include Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc managing director and Group CEO; Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure; Ahmed Ali Al Sayegh, Minister of State; Khaldoon Khalifa Al Mubarak, managing director and Group CEO of Mubadala Investment Company; and Jassem Mohamed Bu Ataba Al Zaabi, Chairman of the Abu Dhabi Department of Finance.

— muzaffarrizvi@khaleejtimes.com