Abu Dhabi’s Supreme Petroleum Council (SPC) has approved Abu Dhabi National Oil Company’s (ADNOC) new integrated gas strategy and plans to increase its oil production capacity to four mmbbl per day at the end of 2020 and five mmbbbl per day by 2030
The SPC’s approval of 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. At its meeting, the SPC announced new discoveries of gas in place, totalling 15 trillion scf. It also announced new discoveries of one billion barrels of oil in place and approved ADNOC’s new five-year business plan and capital investment growth of US$132.33bn between 2019-2023.
The gas strategy will sustain LNG production to 2040 and allow ADNOC to seize incremental LNG and gas-to-chemicals growth opportunities, where they arise, from the UAE’s dynamic demand and supply position and evolving energy mix.
ADNOC’s integrated oil and gas strategy underpins its downstream investment plans announced in May, which will see the company triple production of petrochemicals to 14.4mn tonnes per annum 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. In addition to being used for power generation and other industrial uses, natural gas is the fuel that powers most chemical and refining processes.
Through a combined program of strategic partnerships and investments, ADNOC will increase its range and volume of high-value downstream products, secure better access to growth markets around the world and create a manufacturing ecosystem in Ruwais that will stimulate the creation of in-country value, private-sector growth and specialised job opportunities.
Meanwhile, the announcement of the discovery of significant new oil reserves endorses the Abu Dhabi government’s historic 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 barrels of oil 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.
Under the new gas strategy, ADNOC will develop the Hail, Ghasha and Dalma project that taps into Abu Dhabi’s Arab formation, which is estimated to hold multiple trillions of cubic feet of recoverable gas. The project is expected to produce more than 1.5 bcf of gas per day. ADNOC aims to unlock other sources of gas, which include Abu Dhabi’s gas caps and unconventional gas reserves, as well as new natural gas accumulations, which will continue to be appraised and developed as the company pursues its exploration activities.
