• 4 minutes Permian in for Prosperous and Bright Future
  • 7 minutes Amount of Oil Usage in the United States
  • 10 minutes America Could Go Fully Electric Right Now
  • 2 hours Something wicked this way comes
  • 4 hours Why NG falling n crude up?
  • 5 hours US after 4 more years of Trump?
  • 1 day Famine, Economic Collapse of China on the Horizon?
  • 2 days Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 2 days .
  • 4 days Daniel Yergin Book is a Reality Check on Energy
  • 22 hours Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 1 day Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 3 days The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 1 day .
  • 4 days Open letter from Politico about US-russian relations
A Major Power Play In Libya

A Major Power Play In Libya

The conflict in Libya is…

Abu Dhabi Oil Company Consolidates Offshore Operations

The Abu Dhabi National Oil Co said it would consolidate two of its offshore divisions in a bid to become “more agile” amid the current oil price environment. The two companies – Abu Dhabi Marine Operating Co and Zakum Development Co – produce a combined 1.2 million barrels of crude daily. After the consolidation, ADNOC plans to boost this to 1.6 million bpd, over the next two years.

The move by ADNOC is part of a larger restructuring drive in the energy industry of the UAE, as the emirates start to feel more deeply the pinch of persistently low oil prices. ADNOC, which is the country’s biggest oil company, said the point of the consolidation was to make the business “more agile, better able to respond to changing market demands, and be well positioned to take advantage of strategic opportunities for future growth.”

The restructuring of ADNOC’s offshore divisions will also involve its partners in the business, which include French Total, UK’s BP, Exxon, and Japan Oil Development Company. These companies will be part of a steering committee tasked with overseeing the process that should be completed by early 2018.

The UAE produces some 3.2 million barrels daily, but ADNOC, which is the country’s biggest oil and gas firm, said earlier this year it was planning to spend more than US$25 billion on raising this to 3.5 million bpd over the next two years.

The oil-dependent emirates are not stopping there, however. Last month, Energy Minister Suhail Al Mazroui said the government was working on plans to turn the port of Fujairah into a leading oil hub, rivaling Amsterdam and Singapore. As part of these efforts, the port started publishing weekly oil inventory data to enhance transparency.

The ambition to turn Fujairah into a global energy hub was also helped by Platts, which announced it would start publishing independent price assessments for a number of oil products sold on the Middle Eastern market on a free-on-board basis at Fujairah. The data releases started this Monday.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News