UAE’s ADNOC to invest $ 127 billion in 2022-2026 as oil and gas reserves increase

General view of the Borouge petrochemical facility at ADNOC’s Ruwais industrial complex in Ruwais, United Arab Emirates, May 14, 2018. REUTERS / Christopher Pike / File Photo

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CAIRO, Dec. 1 (Reuters) – The Abu Dhabi National Oil Company (ADNOC) on Wednesday announced a $ 127 billion capital spending plan for 2022-2026, citing increased oil reserves and of natural gas from the United Arab Emirates (UAE).

The state-owned company said national reserves increased by 4 billion tank barrels (stb) of oil and 16 trillion standard cubic feet (scf) of natural gas, bringing the totals to 111 billion stb and 289 trillion scf respectively.

ADNOC said this strengthens the UAE’s position as the world’s number six in oil reserves and number seven in gas reserves.

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Abu Dhabi Crown Prince Sheikh Moahmmed bin Zayed chaired the company’s annual board meeting, which approved capital spending of 466 billion dirhams ($ 127 billion) for 2022-2026, against 122 billion dollars for 2021-25.

The investment will increase the upstream production capacity, the company’s downstream portfolio, as well as low-carbon and clean energy activities, he said, without giving details.

ADNOC said that since the launch of its so-called value program in the country in 2018, it has brought 105 billion dirhams back to the UAE economy and created more than 3,000 jobs in the private sector, including more than 1,000 this year.

It aims to reinject more than 160 billion dirhams into the economy of the United Arab Emirates between 2022 and 2026 through the same program, he added.

ADNOC’s Board of Directors also approved a ‘New Energy Strategy’ aimed at reducing its carbon footprint and capitalizing on opportunities in renewables, hydrogen and other low carbon fuels. .

Meanwhile, the government announced a global clean energy powerhouse to spearhead the goal of net zero carbon by 2050. Consolidating their combined efforts in renewable energy and green hydrogen, Abu Dhabi National Energy Company PJSC (TAQA), Mubadala Investment Co and ADNOC will partner under the brand Abu Dhabi Future Energy Company (Masdar).

The partnership will have a combined current, committed and proprietary capacity of over 23 gigawatts (GW) of renewable energy, with the expectation of reaching well over 50 GW of total capacity by 2030, TAQA said in a statement. separate.

TAQA will assume the leadership role with a 43% stake in the renewable energy activities of Masdar, with Mubadala holding 33% and ADNOC 24%.

Meanwhile, ADNOC will assume the leadership role with a 43% stake in Masdar’s green hydrogen business, with Mubadala owning 33% and TAQA 24%, he said.

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Reporting by Lilian Wagdy and Enas Alashray Additional reporting by Saeed Azhar Editing by Louise Heavens and Mark Potter

Our Standards: Thomson Reuters Trust Principles.

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