The Abu Dhabi National Oil Company (ADNOC) will invest as much as $127 billion in its upstream, downstream, and low-carbon fuel businesses between 2022 and 2026, the state oil firm of OPEC’s third-largest producer, the United Arab Emirates (UAE), said on Wednesday.
The investment is set to help the UAE expand its oil and gas production capacity, commit more investments in the downstream segment, and invest more in its low-carbon fuels business and clean energy ambitions.
With the five-year capital spending plan, ADNOC looks to “further stimulate growth and diversification,” the company said after its board approved the 2022-2026 capital plan.
Alongside the capital spending for the next five years, ADNOC announced today a rise in its national reserves of 4 billion stock tank barrels (STB) of oil and 16 trillion standard cubic feet (TSCF) of natural gas.
“These additional reserves increase the UAE’s hydrocarbon reserves base to 111 billion STB of oil and 289 TSCF of natural gas, reinforcing the country’s position in global rankings as the holder of the sixth-largest oil reserves and the seventh-largest gas reserves,” ADNOC said.
Around half of the newly added oil reserves are Murban-grade crude, which could boost the long-term liquidity of the Murban Futures Contract launched in March this year, the company added.
Last month, ADNOC already announced a major investment in the expansion of its oil and gas production capacity as it pledged to invest up to $6 billion in growing drilling activities and capabilities in order to raise its crude oil production capacity to 5 million barrels per day (bpd) by 2030 and become self-sufficient in natural gas. Currently, the crude oil production capacity of the OPEC member is around 4 million bpd.
“ADNOC’s world record investments in drilling-related equipment underlines our commitment to responsibly unlocking our world-scale hydrocarbon resources and expanding our production capacity to continue providing the world with some of the least carbon-intensive barrels for decades to come,” said ADNOC Managing Director and Group CEO, Sultan Ahmed Al Jaber, who is also UAE Minister of Industry and Advanced Technology.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
Charles is a writer for Oilprice.com