Page 8 - MEOG Week 48 2022

MEOG PROJECTS & COMPANIES MEOG

ADNOC growth strategy

approved, new targets set

UAE UAE President HH Sheikh Mohamed bin Zayed The flagship company will combine the opera-
Al Nahyan this week presided over the annual tions, maintenance and marketing of ADNOC
meeting of the Abu Dhabi National Oil Co. Gas Processing and ADNOC LNG into one con-
(ADNOC) board of directors, in his capacity as solidated entity. ADNOC will proceed with an
its chairman. initial public offering (IPO) of a minority stake
During the meeting, the board directed in the new company on the Abu Dhabi Securities
ADNOC to pursue a net zero by 2050 ambition Exchange (ADX) in 2023, subject to applicable
to support the UAE’s Net Zero by 2050 Strategic regulatory approvals.
Initiative. The board also approved ADNOC’s ADNOC’s five-year business plan and capital
strategy to accelerate growth across its value expenditure (CAPEX) of AED550bn ($150bn)
chain to responsibly meet rising energy demand for 2023-2027 was approved to enable the accel-
and support global energy security. As part of erated growth strategy. As part of this plan,
the strategy, ADNOC will establish a new Low ADNOC aims to drive AED175bn ($48bn)
Carbon Solutions & International Growth ver- back into the UAE economy through its ICV
tical focused on new energies, gas, LNG and programme.
chemicals. This is a significant increase in the previous
Bin Zayed underlined ADNOC’s role as a pri- CAPEX allocation of AED466bn ($127bn) for
mary catalyst for the UAE’s growth and diver- 2022-2026 announced a year ago.
sification and commended the company for
maximising value for the country and creating Emissions target
new economic and industrial opportunities for ADNOC’s Net Zero by 2050 ambition covers
the private sector. its operational Scope 1 and Scope 2 greenhouse
At the meeting, the board endorsed plans to gas emissions (GHGs). This ambition is under-
bring forward ADNOC’s 5mn barrels per day pinned by a continued focus on key decarboni-
(bpd) of oil production capacity expansion to sation levers of energy efficiency and operational
2027, from the previous target date of 2030, as excellence across the value chain, large-scale
part of the accelerated growth strategy. ADNOC implementation of carbon capture, utilisation
produces some of the world’s least carbon-in- and storage (CCUS) and the use of renewable
tensive oil and this new target will provide the energy sources.
company with greater flexibility to meet rising ADNOC is an industry leader in efficiently
global energy demand. reducing methane emissions and it is making
The accelerated production capacity target significant investments in new technologies to
is underpinned by the UAE’s robust hydrocar- further improve its environmental performance.
bon reserves, which have increased by 2bn stock The company recently set a new upstream meth-
tank barrels (STB) of oil and 1 trillion standard ane intensity target of 0.15% by 2025. ADNOC is
cubic feet (28bn cubic metres) of natural gas also leveraging its partnerships to invest in and
this year. These additional reserves increase the integrate low-carbon technologies and solu-
UAE’s reserves base to 113bn STB of oil and 290 tions to ensure a cost-effective decarbonisation
tcf cubic feet (8.2 tcm) of gas, reinforcing the pathway.
country’s position in global rankings as the cus- The Low Carbon Solutions & International
todian of the sixth-largest oil reserves and the Growth vertical will build on ADNOC’s suc-
seventh-largest gas reserves. cessful value creation and investment journey
The board endorsed the creation of ‘ADNOC and further drive international growth, as well
Gas’, a new world-scale gas processing and mar- as capture opportunities in renewables and new
keting company, effective from 1 January, 2023. energies.™

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