UAE's ADNOC to Invest $127B in 2022-26 as Oil, Gas Reserves Rise

Wednesday, December 1, 2021

Abu Dhabi National Oil Company (ADNOC) announced on Wednesday a $127 billion capital spending plan for 2022-2026, as it reported an increase in the United Arab Emirates' (UAE) oil and natural gas reserves.

The state-owned company said national reserves had risen by 4 billion stock tank barrels (stb) of oil and 16 trillion standard cubic feet (scf) of natural gas, taking the totals to 111 billion stb and 289 trillion scf respectively.

ADNOC said that reinforced the UAE's position as number six in the world for oil reserves and number seven for gas reserves.

Abu Dhabi Crown Prince Sheikh Moahmmed bin Zayed chaired the company's annual board meeting, which approved capital spending of 466 billion dirhams ($127 billion) for 2022-2026, up from $122 billion for 2021-25.

The investment will expand upstream production capacity, the company's downstream portfolio, plus low carbon and clean energy businesses, it said, without giving details.

ADNOC said that since the launch of its so-called in-country value programme in 2018, it had driven 105 billion dirhams back into the UAE economy and created over 3,000 jobs in the private sector, including over 1,000 this year.

It aims to drive over 160 billion dirhams back into the UAE economy across 2022-2026 through the same programme, it added.

The ADNOC board also approved a "New Energies Strategy" aimed at reducing its carbon footprint and capitalising on opportunities in renewable energy, hydrogen and other lower carbon fuels.

Separately, the government announced a global clean energy powerhouse intended to spearhead the drive to net-zero carbon by 2050. Consolidating their combined efforts in renewable energy and green hydrogen, Abu Dhabi National Energy Company PJSC (TAQA), Mubadala Investment Co and ADNOC will partner under the Abu Dhabi Future Energy Company (Masdar) brand.

The partnership will have a combined current, committed, and exclusive capacity of over 23 gigawatts (GW) of renewable energy, with the expectation of reaching well over 50 GW total capacity by 2030, TAQA said in a separate statement.

TAQA will take the leading role with a 43% shareholding in Masdar's renewable energy business, with Mubadala holding 33% and ADNOC 24%.

Meanwhile, ADNOC will take the leading role with a 43% shareholding in Masdar's green hydrogen business, with Mubadala holding 33% and TAQA 24%, it said.

 (Reporting by Lilian Wagdy and Enas Alashray Additional reporting by Saeed Azhar Editing by Louise Heavens and Mark Potter)

Categories: Energy Middle East Industry News Activity Production

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