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UAE Energy Minister: New Oil Discoveries Bolster ADNOC Bid to Reach 5M Bpd Capacity

UAE Energy Minister: New Oil Discoveries Bolster ADNOC Bid to Reach 5M Bpd Capacity

Monday, 23 November, 2020 - 05:15
UAE's SPC gave approval for ADNOC to award exploration blocks in Abu Dhabi’s second competitive block bid round which was launched in 2019. AAWSAT AR

United Arab Emirates’ Energy Minister Suhail al-Mazrouei said on Monday the latest oil discoveries are part of state-owned Abu Dhabi National Oil Co’s efforts to increase production capacity to 5 million barrels per day by 2030.


The discoveries “reflect the constant development operations carried out by ADNOC in its endeavor to reach its target of increasing oil production capacity to 5 million bpd by 2030,” Mazrouei said on his ministry’s Twitter account.


This came after UAE on Sunday revealed the discovery of two billion barrels of conventional oil reserves and 22 billion barrels of unconventional oil reserves.


The Supreme Petroleum Council (SPC) announced the discovery of substantial recoverable unconventional oil resources located onshore, estimated at 22 billion stock tank barrels (STB), and an increase in conventional oil reserves of 2 billion STB in the Emirate of Abu Dhabi.


The announcements were made following the SPC meeting presided over by Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates (UAE) Armed Forces and Vice-Chairman of the SPC.


At the meeting, the SPC approved ADNOC’s capital expenditure (CAPEX) plan of AED 448 billion ($122 billion) for 2021-2025 to enable smart growth.


As part of this plan, ADNOC aims to drive over AED160 billion ($43.6 billion) back into the UAE's economy between 2021-2025, state news agency WAM reported.


The inflow to the local economy will be enabled by ADNOC’s In-Country Value (ICV) program which is aimed at nurturing new local and international partnerships and business opportunities for the private sector, fostering socio-economic growth and creating job opportunities for Emiratis.


In addition, the SPC gave approval for ADNOC to award exploration blocks in Abu Dhabi’s second competitive block bid round which was launched in 2019.


During the meeting, Sheikh Mohamed bin Zayed reaffirmed the support of the UAE President and Chairman of the SPC, Sheikh Khalifa bin Zayed Al Nahyan, for ADNOC as the company continues to deliver sustainable value for the national economy through its 2030 strategy.


He also commended the Abu Dhabi National Oil Company’s (ADNOC) agility and resilience, which has enabled the company to ensure zero interruptions to its operations while achieving its operational and financial targets, despite the tough market conditions.


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