ADNOC invests in future vision of Oil and Gas 4.0

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Abu Dhabi National Oil Company (ADNOC) is looking to accelerate the delivery of its new integrated gas strategy, as well as planning to increase oil production capacity to 4mn b/d by 2020, according to His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, speaking at the recent Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

During the conference, ADNOC unveiled a $1.4bn investment to upgrade and expand its Bu Hasa field, which will increase crude oil production capacity to 650,000 b/d, in addition to strategic partnership announcements with Total (acquiring a 40% stake in the Ruwais Diyab unconventional gas concession) and Eni (awarding it a 25% stake in the Ghasha concession). In addition, ADNOC announced a framework agreement with Indian Strategic Petroleum Reserves (ISPRL) to explore the possibility of storing ADNOC crude oil at ISPRL’s underground oil storage facility at Padur, in Karnataka. The agreement builds on an earlier deal to store 5.86mn barrels of ADNOC crude oil at another ISPRL underground facility, in Mangalore.

The company also plans to extend to 2040 the gas supply agreement with ADNOC LNG, in coordination with ADNOC LNG’s joint venture partners Mitsui, BP and Total. As part of a drive to diversify its customer portfolio, ADNOC LNG has signed seven term contracts for the supply of more than 4.2mn t/y of LNG, starting April 2019. The LNG buyers include Japan’s JERA, which will take up to eight cargoes per year, for a period of three years.

Dr Al Jaber also indicated that ADNOC would be making a number of strategic announcements in forthcoming weeks, including new partners for the Ghasha concession – ADNOC’s offshore ultra-sour gas mega-project, comprising the Hail, Ghasha, Dalma and other offshore fields, which is expected to produce more than 1.5bn cf/d of gas around the middle of the next decade.

ADNOC also plans to unlock other sources of gas, including Abu Dhabi’s gas caps and unconventional gas reserves, as well as new natural gas accumulations. Its unconventional resources are expected to produce 1bn cf/d before 2030, while the development of the Umm Sahif gas cap is expected to produce an additional 500mn cf/d for processing by 2030.

Other upcoming announcements relate to the Abu Dhabi government’s decision earlier this year to open six oil and gas blocks for competitive bidding, with the first E&P licences expected to be awarded in 1Q2019. The blocks potentially hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

The announcements build on Abu Dhabi’s Supreme Petroleum Council’s (SPC) approval of ADNOC’s plans to appraise and develop new gas resources that will enable the UAE to achieve gas self-sufficiency, with the aim of transitioning to a net gas exporter, sustaining LNG production to 2040.

The SPC has also approved an increase in ADNOC’s oil production capacity to 4mn b/d by the end of 2020, and 5mn b/d by 2030, as well as its new five-year business plan and capital investment growth of $132.33bn between 2019–2023.

Dr Al Jaber commented: ‘During ADIPEC, we made a number of important announcements, including strategic partnerships with Total and Eni, as a direct result of the recent SPC approval of our new five-year business plan and long-term growth strategy. These new partnerships, along with our forthcoming collaborations with Saudi Aramco and Mubadala, will make significant contributions to the delivery of our 2030 growth strategy.’

‘The announcements also represent progress on our efforts to tap the energy resources needed to enable global economic growth in the 4th Industrial Age – a mission we have defined as Oil & Gas 4.0. We are on the brink of a new era of opportunity for the oil and gas industry – an era in which digital innovation is delivering unprecedented levels of prosperity and driving demand for our products. ADNOC is gearing up to meet this demand and, through creative partnerships, seize the opportunities of Oil and Gas 4.0.’

Source: ADNOC

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