UAE: Oil & Gas Adnoc to Introduce New Integrated Gas Strategy and Increase Oil Production
The new strategy aims at making the UAE self-sufficient in gas reserves as well as a net gas exporter over a period of time. In terms of oil production, the company intends to escalate its capacity to 4 mmbpd by the end of 2020 and 5 mmbpd by 2030.
Abu Dhabi/UAE – The Abu Dhabi National Oil Company (Adnoc) has recently announced its plans to launch a new integrated gas strategy and increase its oil production capacity to 4 million barrels per day (mmbpd) by the end of 2020 and 5 mmbpd by 2030. This move will be carried out following an approval from the Supreme Petroleum Council (SPC), the highest governing body of the oil and gas industry in Abu Dhabi. The company also announced capital investment growth of 132.33 billion dollars between 2019 –2023 and new discoveries of one billion oil barrels.
Adnoc’s gas strategy will add potential resources that will enable the UAE to achieve gas self-sufficiency, with the aim of potentially transitioning to a net gas exporter. The company also announced new discoveries of gas, totaling 15 trillion standard cubic feet (tscf). The gas strategy will sustain LNG production to 2040 and allow the firm to seize incremental LNG and gas-to-chemicals growth opportunities from the UAE’s dynamic demand-supply position and evolving energy mix.
The company’s integrated oil and gas strategy underpins its 45 billion dollar downstream investment plans, announced in May, which will see the company triple production of petrochemicals to 14.4 million tonnes per year by 2025. In May, at its Downstream Investment Forum, Adnoc unveiled a blueprint to create the world’s largest integrated refining and petrochemicals complex in Ruwais, which will enable it to further stretch the value of every barrel it produces.
The discovery of significant new oil reserves endorses the Abu Dhabi Government’s decision, earlier this year, to open six geographical oil and gas blocks for competitive bidding. Based on existing data from detailed petroleum system studies, seismic surveys, log files and core samples from hundreds of appraisal wells, estimates suggest these new blocks hold multiple billion oil barrels and multiple trillion cubic feet of natural gas. The first exploration and production licenses are expected to be awarded in the first quarter of 2019.
The licensing strategy represents a major advance in how Abu Dhabi unlocks new opportunities and maximises value from its hydrocarbon resources. It is also consistent with the firm’s approach to expanding its strategic partnerships across all areas of its business. The successful bidders will enter into agreements granting exploration rights (provided defined targets are achieved in the exploration phase) and be granted the opportunity to develop and produce any discoveries with Adnoc, under terms set out in the bidding package.