Energy
From The Report: Abu Dhabi 2017
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In common with other major energy companies, lower hydrocarbons prices have prompted authorities to carry out streamlining and efficiencies in Abu Dhabi’s energy sector. Against a backdrop of reorganisation and reform, production from the emirate’s oil and gas fields reached record levels in 2016. Currently, Abu Dhabi National Oil Company produces some 3m barrels of oil and 9.8bn standard cu feet per day of raw gas. Looking ahead, ADNOC’s strategy is to improve profitability and sustainability upstream while increasing value downstream. It also plans to triple the emirate’s output of petrochemicals by 2025. In the broader energy sphere, Abu Dhabi remains committed to making long-term investments in innovation and development of renewable energy and carbon capture technologies.

This chapter contains an interview with Sultan Al Jaber, UAE Minister of State; and Group CEO, Abu Dhabi National Oil Company.

Articles from this Chapter

Overview

Streamline and strengthen: The emirate focuses on boosting profits and efficiency upstream while developing downstream
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In common with other major energy companies, lower hydrocarbons prices have prompted authorities to carry out streamlining and efficiencies in Abu Dhabi’s energy sector. Against a backdrop of reorganisation and reform, production from the emirate’s oil and gas fields reached record levels in 2016. Currently, Abu Dhabi National Oil Company (ADNOC) produces some 3m barrels of oil and 9.8bn standard cu feet per day (scfd) of raw gas. Looking ahead, ADNOC’s strategy is to improve profitability…

Interview

Enabling smart growth: Sultan Al Jaber, UAE Minister of State; and Group CEO, Abu Dhabi National Oil Company (ADNOC), on bringing new efficiencies to the emirate’s energy landscape
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Interview: Sultan Al Jaber How are ADNOC’s priorities going to change moving forward across the value chain? SULTAN AL JABER: We have examined all of our assets, competitive advantages and emerging market potential. Based on this comprehensive review, we have set out our 2030 growth strategy, which will deliver a more profitable upstream, a more valuable downstream and a more economic and sustainable supply of gas. We are balancing a focus on maintaining efficiency and improving performance with…

Analysis

Come together: Landmark consolidation efforts present opportunities for the sector to capitalise on potential synergies
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Under new leadership, Abu Dhabi National Oil Company (ADNOC) is set to become a more streamlined organisation in 2017, as steering groups work through the fine details of two landmark consolidations; the first concerning two offshore oil companies, and the second relating to three shipping and marine services companies. After two years of challenging trading conditions in global energy markets, leveraging synergies between these business units is expected to enable the parent group to reduce…

Analysis

Branching out: Subsidy reforms and alternative fuels are driving demand for expanded distribution services
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Rising demand for cleaner, greener modes of transport is driving the expansion and modernisation of filling stations across Abu Dhabi that increasingly cater to cars, buses and taxis powered by electricity, compressed gas, petrol or diesel. The Abu Dhabi National Oil Company (ADNOC) subsidiary responsible for meeting this demand, ADNOC Distribution, is also generating healthier revenues following the UAE government’s decision to remove subsidies and set monthly charges aligned to international…

Analysis

Widening the net: Technology plays a central role in tapping undeveloped gas reserves and maximising efficiency
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Faced with rising consumption by its industries and power generators, Abu Dhabi is determined to leverage its domestic natural gas assets to reduce its reliance on imports. Abu Dhabi National Oil Company (ADNOC) has developed an integrated Gas Master Plan as part of its 2030 Strategy that will see it investing in the expansion of its sour gas facilities, while ensuring it minimises wasteful use of associated gas in its oil fields. The plan also includes a revision of ADNOC’s gas pricing…

Analysis

Onshore action: As long-standing concessions came to an end, the emirate negotiates new agreements with partners from around the world
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With significant investment and new or renewed international partnerships, production from Abu Dhabi’s onshore oil fields, which are operated by Abu Dhabi Company for Onshore Petroleum Operations (ADCO), the onshore firm of Abu Dhabi National Oil Company (ADNOC), is due to reach 1.8m barrels per day (bpd) in 2018. A further 1.7m is set to be produced offshore by the newly consolidated Abu Dhabi Marine Operating Company (ADMA-OPCO) and Zakum Development Company. ADCO signed a significant…

Analysis

Optimising output: Raising efficiency and increasing innovation are central to efforts by offshore companies to maximise production
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It has been a time of sweeping changes in the boardrooms and offices of Abu Dhabi’s offshore oil businesses, but on the rigs, platforms and islands, the focus continues to be on increasing the output of oil and gas. The consolidation of Abu Dhabi Marine Operating Company (ADMA-OPCO) and Zakum Development Company (ZADCO), which was announced in October 2016, has given the combined company’s management some challenges to grapple with in 2017 as they finalise the precise details of the union. However,…

Analysis

The smart approach: The role of research and development (R&D) in the energy industry is rapidly expanding
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New technologies are being deployed across Abu Dhabi’s energy sector to extract as much oil and gas from the sea bed and desert sands as possible to reap the optimum return on investment. However, developing new technologies can be expensive, and in a commercial setting R&D budgets may be the first to be trimmed when the focus is on reducing costs. Investors & Inventors The mindsets and interests of investors and inventors may seem poles apart at first, but the richest oil baron…

Analysis

Harnessing the sun: The emirate is at the forefront of expanding the role of solar power and other alternative energy sources
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Renewable energy has quite literally taken off in Abu Dhabi, with the emirate taking centre stage in the first solar-powered flight around the planet, while Abu Dhabi Water and Electricity Authority (ADWEA) received a new world record lowest bid for a solar power generation project. With a new 2050 energy strategy in place at the federal level, coupled with rapidly diminishing costs, new projects are expected to join a burgeoning renewable energy industry in the emirate. ADWEABid In…