Our Correspondent
On November 22, the UAE’s Supreme Petroleum Council (SPC) announced new discoveries of unconventional oil resources estimated at about 22 billion barrels of oil in addition to 2 billion barrels of conventional oil in Abu Dhabi. The UAE’s discovery of new oil resources will take the country’s total conventional oil reserves to 107 billion barrels, placing it near Russia, one of the world’s largest energy exporters.
The conventional oil find has also strengthened the country’s position in global rankings as the holder of the sixth largest oil reserves.
Unconventional oil, crude that is extracted using complex methods such as horizontal boring and hydraulic fracturing, has now become a new area of focus for Abu Dhabi National Oil Company (ADNOC) which is suffering from output declines in some of its older oilfields.
The announcements were made following the SPC meeting presided over by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Vice-Chairman of the SPC.
Sheikh Mohamed bin Zayed commended ADNOC’s agility and resilience, which has enabled the company to ensure zero interruptions to its operations while achieving its operational and financial targets, despite the tough market conditions.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said that in “a very challenging year” where they had to “navigate COVID-19 and volatile energy markets”, ADNOC has delivered robust operational and financial performance. He expressed confidence that ADNOC is well-positioned to continue driving long-term and sustainable value for the UAE while creating opportunities for local businesses. The latest discovery shows the company’s “efficiency” in “accelerating the pace of exploration and development of Abu Dhabi’s unconventional hydrocarbon resources,” he added.
The SPC has approved ADNOC’s plan to increase its capital investments to Dh448 billion for the next five years, which will enable the company to achieve “smart growth.” Through this plan, ADNOC intends to redirect Dh160 billion ($ 43.6 billion) to UAE’s economy during 2021-2025.
Earlier this month, ADNOC announced the delivery of the first unconventional gas from the Ruwais Diyab Unconventional Gas Concession located 200 km west of Abu Dhabi city.
The higher budget will be used for exploration, production and the petrochemicals sector. ADNOC is looking to develop the Ruwais Industrial Complex as a global centre for refining and petrochemical activities.
Oil and gas giants are looking to tap into the market for petrochemicals, used in everything from plastics to automobiles, to drive future revenue growth.
