(WO) – The President of the United Arab Emirates, His Highness Sheikh Mohamed bin Zayed Al Nahyan, chaired the annual meeting of the board of directors of the Abu Dhabi National Oil Company (ADNOC) on Monday, in his capacity as chairman.
During the meeting, held at ADNOC Headquarters, the Board directed ADNOC to pursue an ambition of net zero by 2050 to support the UAE’s net zero strategic initiative by 2050. The Board also approved ADNOC’s strategy to accelerate growth across its entire value chain to responsibly meet growing energy demand and support global energy security . As part of this strategy, ADNOC will set up a new low-carbon solutions and international growth vertical focused on new energies, gas, LNG and chemicals.
His Highness Sheikh Mohamed bin Zayed commended the steps taken by ADNOC to further reduce its carbon footprint as it expands its operations to meet growing global energy demand. His Highness noted that ADNOC’s comprehensive approach to sustainability demonstrates the UAE’s commitment to remaining a responsible global energy supplier and enabling a more sustainable future.
His Highness Sheikh Mohamed bin Zayed highlighted ADNOC’s important role as the main catalyst for growth and diversification in the UAE and commended the company for maximizing value for the nation and creating new economic opportunities. and industrial for the private sector. His Highness commended ADNOC’s efforts to drive industrial growth through its In-Country Value (ICV) program and support for the “Make it in the Emirates” initiative.
This year, ADNOC’s ICV program has injected more than AED35 billion ($9.54 billion) back into the national economy and enabled 2,000 UAE nationals to be employed in the supply chain. supply of ADNOC. These achievements bring the total value injected back into the economy to AED140 billion ($38 billion) since the program was launched in 2018. In addition, a total of 5,000 UAE nationals have been employed in the chain. supply of ADNOC through the program since its inception.
ADNOC also supports the “Make it in the Emirates” initiative and has signed deals for local manufacturing opportunities worth more than AED25 billion ($6.8 billion) with companies in the Arab Emirates. united and international this year, as it achieves its goal of locally manufacturing more than 100 products in its supply pipeline worth AED70 billion ($19 billion) by 2030.
His Highness commended ADNOC’s focus on performance and efficiency and its efforts to develop and empower its workforce. His Highness praised ADNOC’s achievements in improving employee productivity and increasing the UAE’s national employment rate by 15 percentage points over the past five years. His Highness expressed his appreciation for the hard work of ADNOC employees and emphasized that people are the nation’s greatest asset and the leadership of the UAE will continue to prioritize the development of human capital. His Highness also stressed the importance of continuing to improve performance, efficiency and agility and asked ADNOC to strengthen its efforts in this regard.
His Highness Sheikh Mohamed bin Zayed met with a group of young ADNOC employees and was briefed on the company’s transformation journey. ADNOC’s transformation is enabled by its Accelerate 100X program aimed at capitalizing on the changing energy landscape, future-proofing the business during the energy transition and maximizing value for the UAE.
At the meeting, the board approved plans to advance ADNOC’s 5 million barrel per day oil production capacity expansion through 2027, from the previous target of 2030, as part of the accelerated growth strategy. ADNOC produces one of the least carbon-intensive oils in the world and this new focus will give the company greater flexibility to meet growing global energy demand.
The accelerated production capacity target is supported by the UAE’s strong hydrocarbon reserves, which have increased by 2 billion storage barrels (STB) of oil and 1 trillion standard cubic feet (Tscf) of gas natural this year. These additional reserves increase the UAE’s reserve base to 113 billion STB of oil and 290 Tscf of natural gas, strengthening the country’s position in the world rankings as the custodian of the sixth largest oil reserves and the seventh largest reserves. gas.
The Board of Directors approved the creation of ADNOC Gas, a new global gas processing and marketing company, effective January 2023. The flagship company will combine the operations, maintenance and marketing of ADNOC Gas Processing and ADNOC LNG into a single consolidated entity. ADNOC will proceed with an IPO of a minority stake in the new company on the Abu Dhabi Stock Exchange (ADX) in 2023, subject to applicable regulatory approvals.
ADNOC’s five-year business plan and capital expenditure of AED550 billion ($150 billion) for 2023-2027 has been approved to enable the accelerated growth strategy. Under the plan, ADNOC aims to inject AED175 billion ($48 billion) back into the UAE economy through its ICV program.
“The world needs maximum energy, minimum emissions and it needs all energy solutions if we are to achieve global energy security,” said HE Dr. Al Jaber. “ADNOC is committed to making today’s energy cleaner while investing in tomorrow’s clean energy to strengthen our position as a reliable and responsible energy provider. As we achieve these goals, we will continue to generate greater and more sustainable value for the UAE, create opportunities for the private sector to benefit from ADNOC’s growth, and deliver more skilled employment opportunities to nationals of the United Arab Emirates.
ADNOC’s Net Zero by 2050 ambition covers its operational Scope 1 and Scope 2 greenhouse gas (GHG) emissions. energy efficiency and operational excellence throughout the value chain, the large-scale implementation of carbon capture, utilization and storage (CCUS) and the use of renewable energy sources.
ADNOC is an industry leader in the effective reduction of methane emissions and makes significant investments in new technologies to further improve its environmental performance. The company recently set a new upstream methane intensity target of 0.15% by 2025. ADNOC is also leveraging its partnerships to invest and integrate low-carbon technologies and solutions to ensure a cost-effective decarbonization pathway.
Low-carbon solutions and vertical international growth will build on ADNOC’s successful track record of value creation and investment and will further drive international growth, as well as seize opportunities in renewable and new energy.
Upstream, the increase in national oil and gas reserves has been driven by the deployment of advanced technologies, the application of reservoir management best practices and the optimization of field development plans. Most of the STB 2 billion national oil reserves are Murban-grade crude, bolstering the long-term liquidity of the Murban futures contract, which has been trading on the ICE Futures Abu Dhabi (IFAD) commodity exchange since March 2021.
Downstream, ADNOC Gas’ formation builds on ADNOC’s more than 40 years of experience as a premier gas producer. The consolidation of ADNOC’s gas processing and LNG operations will create one of the largest gas processing entities in the world with processing capacity of approximately 10 billion standard cubic feet of gas per day across eight sites, onshore and offshore, and a pipeline network of more than 3,250 kilometres.