UAE’s Adnoc brings forward oil output capacity target to 2027

The board of Abu Dhabi National Oil Company (Adnoc) has approved plans to bring forward the company’s five million barrel per day oil production capacity expansion to 2027, from a previous target of 2030.

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, the UAE state-owned WAM news agency reported.  

These additional reserves increase the UAE’s reserves base to 113 billion STB of oil and 290 TSCF of natural gas, with the country having the sixth-largest oil reserves and the seventh-largest gas reserves.

The board endorsed the consolidation of Adnoc gas processing and LNG businesses to create Adnoc Gas, effective January 1, 2023.

Adnoc will float a minority stake in the new company on Abu Dhabi Securities Exchange (ADX) next year.

As part of the strategy, the company will also establish a new low-carbon solution and international growth vertical focused on new energies, gas, liquefied natural gas (LNG) and chemicals.

UAE President Sheikh Mohamed bin Zayed underlined Adnoc’s important role as a primary catalyst for the UAE’s growth and diversification.

In addition, the board approved the five-year business plan and capital expenditure of AED 550 billion ($150 billion) for 2023-2027 to enable the accelerated growth strategy.

As part of the plan, Adnoc aims to drive AED 175 billion back into the UAE economy through its In-Country Value (ICV) programme.

This year, the ICV programme has driven over AED 35 billion back into the nation’s economy and enabled 2,000 UAE nationals to be employed in Adnoc’s supply chain.

The total value driven back into the economy stands at AED 140 billion since the programme was launched in 2018. 

Adnoc supports the “Make it in the Emirates” initiative and has signed agreements for local manufacturing opportunities worth over AED 25 billion with the UAE and international companies this year.

The company is targeting to locally manufacture over 100 products in its procurement pipeline worth AED 70 billion by 2030, the newsreport stated.