The board endorsed the creation of ‘ADNOC Gas’, which will be listed in ADX in 2023…reports Asian Lite News
President Sheikh Mohamed bin Zayed Al Nahyan, yesterday presided over the annual meeting of the Abu Dhabi National Oil Company (ADNOC) Board of Directors, in his capacity as its Chairman.
During the meeting, which was held at ADNOC Headquarters, the board directed ADNOC to pursue a Net Zero by 2050 ambition to support the UAE Net Zero by 2050 Strategic Initiative.
The board also approved ADNOC’s strategy to accelerate growth across its value chain to responsibly meet rising energy demand and support global energy security.
As part of the strategy, ADNOC will establish a new Low Carbon Solutions & International Growth vertical focused on new energies, gas, liquefied natural gas (LNG) and chemicals.
President Sheikh Mohamed bin Zayed praised ADNOC’s steps to further reduce its carbon footprint as it expands its operations to meet rising global energy demand.
Sheikh Mohamed underlined ADNOC’s important role as a primary catalyst for the UAE’s growth and diversification and commended the company for maximising value for the nation and creating new economic and industrial opportunities for the private sector.
He praised ADNOC’s efforts to drive industrial growth through its In-Country Value (ICV) programme and its support for the “Make it in the Emirates” initiative.
This year, ADNOC’s ICV programme has driven over AED35 billion (US$9.54 billion) back into the nation’s economy and enabled 2,000 UAE Nationals to be employed in ADNOC’s supply chain.
These achievements bring the total value driven back into the economy to AED 140 billion (US$38 billion) since the programme was launched in 2018. In addition, a total of 5,000 UAE Nationals have been employed in ADNOC’s supply chain through the programme since it was launched.
ADNOC is also supporting the “Make it in the Emirates” initiative and has signed agreements for local manufacturing opportunities worth over AED25 billion (US$6.8 billion) with the UAE and international companies this year, as it delivers on its target to locally manufacture over 100 products in its procurement pipeline worth AED70 billion (US$19 billion) by 2030.
Sheikh Mohamed commended ADNOC’s achievements in enhancing the productivity of employees and increasing the rate of UAE National employment by 15 percentage points over the past five years.
Sheikh Mohamed met with a group of ADNOC youth employees and was briefed on the company’s transformation journey. ADNOC’s transformation is enabled by its Accelerate 100X programme aimed at capitalising on the evolving energy landscape, future-proofing the company during the energy transition and maximising value for the UAE.
At the meeting, the board endorsed plans to bring forward ADNOC’s 5 million barrels per day (mmbopd) oil production capacity expansion to 2027, from the previous target of 2030, as part of the accelerated growth strategy. ADNOC produces some of the world’s least carbon intensive oil and this new target will provide the company with greater flexibility to meet rising global energy demand.
The accelerated production capacity target is underpinned by the UAE’s robust hydrocarbon reserves, which have increased by 2 billion stock tank barrels (STB) of oil and 1 trillion standard cubic feet (TSCF) of natural gas this year. These additional reserves increase the UAE’s reserves base to 113 billion STB of oil and 290 TSCF of natural gas, reinforcing the country’s position in global rankings as the custodian of the sixth-largest oil reserves and the seventh-largest gas reserves.
The board endorsed the creation of ‘ADNOC Gas’, a new world-scale gas processing and marketing company, effective 1st January, 2023. The flagship company will combine the operations, maintenance and marketing of ADNOC Gas Processing and ADNOC LNG into one consolidated entity. ADNOC will proceed with an initial public offering (IPO) of a minority stake in the new company on the Abu Dhabi Securities Exchange (ADX) in 2023, subject to applicable regulatory approvals.
ADNOC’s five-year business plan and capital expenditure (CAPEX) of AED550 billion (US$150 billion) for 2023-2027 was approved to enable the accelerated growth strategy. As part of this plan, ADNOC aims to drive AED175 billion (US$48 billion) back into the UAE economy through its ICV programme.
ADNOC’s Net Zero by 2050 ambition covers its operational Scope 1 and Scope 2 greenhouse gas emissions (GHG). This ambition is underpinned by a continued focus on key decarbonisation levers of energy efficiency and operational excellence across the value chain, large scale implementation of carbon capture, utilisation and storage (CCUS) and the use of renewable energy sources.
ADNOC is an industry leader in efficiently reducing methane emissions, and it is making significant investments in new technologies to further improve its environmental performance. The company recently set a new upstream methane intensity target of 0.15 percent by 2025. ADNOC is also leveraging its partnerships to invest in and integrate low-carbon technologies and solutions to ensure a cost-effective decarbonisation pathway.