Plus   Neg

UAE Company Announces Major Oil Reserves Discovery, To Boost Output


A major UAE oil company announced the discovery of massive oil and gas resources, and plans to boost output to four million barrels per day by 2020 and 5 million barrels per day by 2030.

The announcement by the Abu Dhabi National Oil Company (ADNOC), one of the world's leading energy producers owned by UAE's Abu Dhabi Emirate, came on the eve of tough US sanctions targeting Iran's oil industry.

A meeting of the Supreme Petroleum Council approved ADNOC's new integrated gas strategy that will enable the UAE to achieve gas self-sufficiency with the aim of potentially transitioning to a net gas exporter.

Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, chaired the meeting. The Supreme Petroleum Council is the governing body of ADNOC, and Abu Dhabi's petroleum policy maker.

At the meeting, the SPC announced new discoveries of gas, totaling 15 trillion standard cubic feet, and of 1 billion barrels of oil.

The Council also approved ADNOC's new five-year business plan and capital investment growth of AED486 billion ($132.33 billion) between 2019-2023.

It is expected to have a significant impact on the nation's economy, helping to drive domestic growth and diversification, creating employment opportunities for UAE nationals, and maximizing the use of local products, manufacturing and assembly facilities, services and infrastructure.

The company had announced downstream investment plans in May, aimed to triple production of petrochemicals to 14.4 million tons per year by 2025. A blueprint was unveiled to create the world's largest integrated refining and petrochemicals complex in Ruwais, which will enable it to further stretch the value of every barrel it produces.

The discovery of significant new oil reserves is the result of the Abu Dhabi government's decision earlier this year to open six oil and gas blocks for competitive bidding. Estimates suggest these new blocks hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas. The first exploration and production licenses are expected to be awarded in the first quarter of 2019.

Dr. Sultan Ahmed Al Jaber, Minister of State and ADNOC Group CEO, said that "While responding to domestic demand, we will maintain our international commercial commitments and seize incremental LNG and gas-to-chemicals growth opportunities."

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT