Adnoc has approved a massive $150bn (AED550bn) spending plan as it prepares to set up a natural gas subsidiary and list shares on the Abu Dhabi Securities Exchange (ADX) next year.
The huge budget was approved at an annual board meeting overseen by President Sheikh Mohamed bin Zayed Al Nahyan, said state news agency WAM.
During the meeting, the board directed the firm to pursue a Net Zero by 2050 ambition to support the UAE Net Zero by 2050 Strategic Initiative.
Adnoc budget and plans approved
Adnoc’s five-year business plan and capital expenditure $150bn (AED550bn) for 2023-2027 was approved to enable the accelerated growth strategy.
As part of this plan, the company aims to drive $48bn (AED175bn) back into the UAE economy.
The board also approved a strategy to accelerate growth across its value chain to responsibly meet rising energy demand and support global energy security. As part of the strategy, it will establish a new Low Carbon Solutions & International Growth vertical focused on new energies, gas, liquefied natural gas (LNG) and chemicals.
The board endorsed the creation of Adnoc Gas, a new world-scale gas processing and marketing company, effective 1st January, 2023.
The flagship company will combine the operations, maintenance and marketing of Adnoc Gas Processing and Adnoc LNG into one consolidated entity.
The company will proceed with an IPO of a minority stake in the new company on the Abu Dhabi Securities Exchange (ADX) in 2023, subject to applicable regulatory approvals.
President Sheikh Mohamed praised Adnoc’s steps to further reduce its carbon footprint as it expands its operations to meet rising global energy demand.
He noted the group’s approach to sustainability is a testament to the UAE’s commitment to remaining a responsible global energy provider and to enabling a more sustainable future.
Sheikh Mohamed underlined the important role as a primary catalyst for the UAE’s growth and diversification and commended the company for maximising value for the nation and creating new economic and industrial opportunities for the private sector.
He praised efforts to drive industrial growth through its In-Country Value (ICV) programme and its support for the “Make it in the Emirates” initiative.
This year, Adnoc’s ICV programme has driven more than $9.54bn (AED35bn) back into the nation’s economy and enabled 2,000 UAE Nationals to be employed in Adnoc’s supply chain.
These achievements bring the total value driven back into the economy $38b (to AED140bn) since the programme was launched in 2018. In addition, a total of 5,000 UAE Nationals have been employed in ADNOC’s supply chain through the programme since it was launched.
At the meeting, the board endorsed plans to bring forward Adnoc’s 5 million bpd oil production capacity expansion to 2027, from the previous target of 2030, as part of the accelerated growth strategy.
The accelerated production capacity target is underpinned by the UAE’s robust hydrocarbon reserves, which have increased by 2bn stock tank barrels of oil and 1tn standard cubic feet of natural gas this year.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO Adnoc said, “Adnoc is well-positioned for this new phase of accelerated growth across the energy value chain.
“Through our Net Zero by 2050 ambition, we are placing sustainability at the centre of our growth, building on the legacy of the Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, who laid the foundation for ADNOC to become one of the least carbon intensive oil and gas producers in the world.
“The world needs maximum energy, minimum emissions, and it needs all the energy solutions if we are to ensure global energy security. Adnoc is committed to making today’s energy cleaner while investing in the clean energies of tomorrow to strengthen our position as a reliable and responsible energy provider.”
The firm’s retail and distribution unit has seen record revenues this year.
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