Abu Dhabi’s Supreme Petroleum Council (SPC) announced Monday an increase in hydrocarbon reserves of 7 billion STB of oil and 58 TSCF of conventional gas, moving the UAE from seventh to the sixth position in both global oil and gas reserves ranking with a total of 105 billion STB of recoverable oil and 273 trillion SCF of conventional gas.
These significant additions to the UAE’s hydrocarbon reserves mark a historic milestone for the country since the last major update of its reserves base three decades ago.
During the meeting, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces and Vice-Chairman of the SPC Sheikh Mohammed bin Zayed Al Nahyan conveyed the encouragement and support of President Sheikh Khalifa bin Zayed Al Nahyan, as ADNOC continues to harness energy resources to create long-term and sustainable value for the nation.
The crown prince presided the meeting of SPC at ADNOC’s headquarters in Abu Dhabi.
He commended ADNOC on its relentless efforts to drive the exploration of Abu Dhabi’s huge hydrocarbon resources, which resulted in the historic achievement of significantly increasing its oil and gas reserves, and elevated the UAE from the seventh to the sixth position in both global oil and gas reserves rankings.
Sheikh Mohammed noted that this achievement reinforces the important role the UAE plays and will continue to play in ensuring the security of energy supplies to global customers.
SPC launched a new pricing mechanism for ADNOC. It announced the discovery of unconventional recoverable gas resources totaling 160 TSCF; a first for the region, ushering in a new era of large scale unconventional hydrocarbon resources development.
ADNOC will engage with its customers and other stakeholders over the coming months regarding the implementation of its new Murban Crude forward pricing mechanism, which will see it move from a retroactive official selling price, OSP, to market-driven, transparent, forward pricing.
The company expects to implement its new Murban Crude forward pricing mechanism between the second and third quarters of 2020.
The new Murban Crude forward pricing mechanism will use a market-driven futures contract as its price marker, enabling customers and the market to better price, trade, and manage their crude requirements.
The futures contract will be traded on an independent and regulated exchange and is expected to demonstrate a highly liquid forward price curve.
