Energy
From The Report: Abu Dhabi 2014
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As a close-out agreement was signed for long-held concessions in early 2014 and the government is looking for potential new partners for the development of its oil and gas fields, 2014 is expected to see a shake-up of Abu Dhabi’s hydrocarbons industry. The government is keen to boost gas production, requiring investment in the emirate’s challenging sour gas reservoirs. This means opportunities in the upstream sector for everyone from oil majors to engineering, procurement and construction (EPC) contractors. There are also likely to be opportunities for independents and smaller players as Abu Dhabi National Oil Company (ADNOC) looks to diversify and broaden the potential of the sector to maximise the emirate’s vast hydrocarbons wealth.
This chapter contains interviews with Abdulla Nasser Al Suwaidi, Director-General, ADNOC; and Khadem Al Qubaisi, Managing Director, International Petroleum Investment Company; as well as a viewpoint from Sultan Ahmed Al Jaber, UAE Minister of State, and CEO, Masdar.
Articles from this Chapter
Hive of activity: From oil and gas to EOR and EPC, opportunities abound in the industry
OBG talks to Abdulla Nasser Al Suwaidi, Director-General, Abu Dhabi National Oil Company (ADNOC)OBGplus
Interview:Abdulla Nasser Al Suwaidi What is the potential for enhanced mechanisms to replace natural gas injection? ABDULLA NASSER AL SUWAIDI: Research studies have demonstrated that carbon dioxide (CO ) enhanced oil recovery (EOR) has the potential to increase recovery from reservoirs. Today, ADNOC, through its operating companies, is evaluating the commercial viability and recovery efficiency of its CO EOR projects, with a goal of achieving 70% recovery. It is clear that high recoveries…
OBG talks to Abdulla Nasser Al Suwaidi, Director-General, Abu Dhabi National Oil Company (ADNOC)OBGplus
Interview:Abdulla Nasser Al Suwaidi What is the potential for enhanced mechanisms to replace natural gas injection? ABDULLA NASSER AL SUWAIDI: Research studies have demonstrated that carbon dioxide (CO ) enhanced oil recovery (EOR) has the potential to increase recovery from reservoirs. Today, ADNOC, through its operating companies, is evaluating the commercial viability and recovery efficiency of its CO EOR projects, with a goal of achieving 70% recovery. It is clear that high recoveries are not out of reach, as they have been successfully attained with CO EOR elsewhere in the world. Abu Dhabi has the potential to carry on EOR operations…
Engine of growth: The focus is now turning to exploiting sour gas reservesOBGplus
Given the demands of power generation, industry and oil field reinjection, gas is becoming more important to the emirate’s economy. As such, in conjunction with international partners, Abu Dhabi National Oil Company (ADNOC) is turning to tight marginal reserves once thought commercially unviable. Rising Consumption Sour gas has been noted as a possible source of future growth for the sector in the Abu Dhabi Economic Vision 2030, the emirate’s long-term development plan. As consumption rates…
New supply: Steadily increasing consumption at home has put pressure on natural gas resourcesOBGplus
In 2008 Abu Dhabi became a net importer of natural gas for the first time, primarily as a result of rising domestic demand for electricity. According to data from the Abu Dhabi Council for Economic Development (ADCED), a government entity charged with facilitating economic diversification, around 60% of the UAE’s total gas consumption goes toward generating electricity, while the rest is used in manufacturing and other industrial activities. Rising Consumption This figure has risen substantially…
Sultan Ahmed Al Jaber, UAE Minister of State and CEO, Masdar, on carbon dioxide capture and storageOBGplus
Sitting atop the world’s seventh-largest oil and gas reserves, the UAE will long have a leadership role within the global energy sector. This is supported by the world’s continued demand for energy, which will be advantageous for the UAE economy. In addition, most economic forecasts project annual GDP growth to rise at an average rate of 4% over the next few years. With this comes the need for more energy within the UAE: the demand for natural gas in Abu Dhabi alone is set to jump by more than…
OBG talks to Khadem Al Qubaisi, Managing Director, International Petroleum Investment Company (IPIC)OBGplus
Interview:Khadem Al Qubaisi To what extent are IPIC’s investments helping to develop a petrochemicals industry in line with the Abu Dhabi Economic Vision 2030? KGADEM AL QUBAISI: IPIC is a long-term investor in energy and energy-related assets and undertakes strategic projects on behalf of its shareholder, the Abu Dhabi government. Since its establishment, IPIC has invested in more than 18 active companies and projects in the hydrocarbons value chain across the globe. These investments…
Looking ahead: Expanding local refining capacityOBGplus
While upstream activity may be grabbing all the headlines in Abu Dhabi, there is also substantial investment in the emirate’s midstream and downstream sector. Given the plans to significantly boost domestic oil production in the coming years, Abu Dhabi National Oil Company (ADNOC) has also turned its attention to the refining industry. Takreer Abu Dhabi Oil Refining Company (TAKREER), which is a subsidiary of ADNOC, is responsible for refining crude and condensates at two sites in Abu Dhabi.…
Testing the waters: The development of offshore islands brings many opportunities for marine services firmsOBGplus
Developments in Abu Dhabi’s waters illustrate the extent of innovation in the emirate’s oil and gas sector. The two main offshore operators, the Abu Dhabi Marine Operating Company (ADMA-OPCO) and the Zakum Development Company (ZADCO), are constructing artificial islands on an unprecedented scale for future drilling programmes. Utilising islands to drill offshore is a demonstration of Abu Dhabi’s commitment to maximising potential. Boosting Production ADMA-OPCO is developing two islands in…
Renewables on the rise: The emirate has a growing reputation for sustainable energy projectsOBGplus
In January 2009, on the eve of the second World Future Energy Summit, Abu Dhabi’s government announced that by 2020 at least 7% of the emirate’s power generation capacity would come from renewable sources. In the half decade since then, Abu Dhabi has become one of the Gulf’s most prominent players in the areas of energy sustainability and renewables research and implementation. With Masdar at the helm, the emirate’s renewables industry is considered to be one of the region’s most advanced. “Through Masdar, the UAE is redefining the role it plays in providing the world with energy,” Sultan Ahmed Al Jaber, UAE Minister of State and…
Active abroad: State-owned firms are investing in energy-related assets overseasOBGplus
In the decades since the formation of the International Petroleum Investment Company (IPIC) in the early 1980s, Abu Dhabi has become an important investor in foreign energy and energy-related concerns. In addition to the IPIC, which has holdings around the world, both the Abu Dhabi National Energy Company (TAQA) and the Mubadala Development Company have made a series of large-scale energy acquisitions overseas over the course of the past decade. The government of Abu Dhabi either wholly or partially…
Pumping up: The emirate is playing a growing role in the domestic petrol retail segmentOBGplus
Steadily rising automobile ownership rates throughout the UAE over the past decade have contributed to a jump in demand for motor fuel in recent years. As of the end of 2013 four companies operated petrol stations in the country, including the distribution arm of the Abu Dhabi National Oil Company (ADNOC Distribution), which is owned by the government of Abu Dhabi; the Dubai government-owned Emirates National Oil Company (ENOC); the Emirates Petroleum Products Company (EPPCO), a wholly owned subsidiary of ENOC; and the Emirates General Petroleum Corporation (EMARAT), which is owned by the UAE’s federal government. As a result of the fact that…
Fuelling transport: Powering the aviation and shipping sectorsOBGplus
The rapid growth of Abu Dhabi’s air transport and maritime shipping industries over the course of the past decade has had a knock-on effect on the production and trading of jet and bunker fuel in both the emirate and the UAE as a whole. A number of major local players – including the Abu Dhabi National Oil Company’s (ADNOC’s) distribution arm, ADNOC Distribution, and the Abu Dhabi Oil Refining Company (TAKREER) – have ramped up production and distribution of both types of fuels in recent…
Alternative means: Demand-side management shows promise to reduce consumptionOBGplus
With growth rates for peak electricity demand (5.9%) and water supply (5.9%) remaining high in 2013, the utilities sector has much work to do. Emphasis has largely been placed on additional investment and the supply side. However, the government is increasingly looking at demand-side management as a means of mitigating consumption trends and reducing the costs of power and water provision. Efficiency Tool Global trends increasingly see energy efficiency as a valuable tool to generate cost…
