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SAFETY4SEA

ADNOC on track to boost oil production to 4 million bpd

by The Editorial Team
January 13, 2020
in Fuels, Offshore
ADNOC oil production

Above image is used for illustration purposes only / Credit: Shutterstock

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UAE’s oil and gas company ADNOC is on track to increase its crude oil production capacity to 4 million barrels per day by the end of this year.

In fact, Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO highlighted the impact of global economic trends on energy demand and outlined the UAE and ADNOC’s response to the fast-evolving energy landscape, saying that

This economic outlook means both the short and long-term demand for energy remains robust. Over the next two decades, we will see growth of at least 25% in energy demand. This is a rate of increase that no single source can satisfy and presents the key challenge of how to produce more energy with fewer emissions.

In the last 10 years, solar capacity has grown by 400% and ADNOC invested in renewable energy projects approaching 12 gigawatts in the UAE as well as across 25 countries around the world.

“We are also adding clean nuclear power to our domestic portfolio. Working closely with the International Atomic Energy Agency, this year, the UAE will be the first country in the region to operate a safe commercial, peaceful nuclear power station,” Dr. Al Jaber said.

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The Emirates News Agency reports that Dr. Al Jaber further emphasized that as the UAE drives clean sources of energy, it is also responsibly growing its hydrocarbon resources to ensure reliable flows of energy to global markets, remarking that

At ADNOC, we are on track to increase crude oil production capacity to 4 million barrels per day by the end of this year. And we made significant new discoveries last year that moved the UAE from 7th to 6th largest oil and gas reserves in the world. In fact, we are also on a path to achieve gas self-sufficiency and to ultimately become a net exporter.

What is more, commenting on ADNOC’s legacy of strong environmental stewardship, Dr. Al Jaber said as the company expands across its value chain, it will follow the principles of responsible production set by the late founding father of the UAE, Sheik Zayed bin Sultan Al Nahyan.

“Today, we are building on this legacy with the region’s first and largest CCUS facility, which currently captures 800,000 tonnes of CO2. And we are expanding this carbon capture capacity by over 500% in the next ten years,” Dr. Al Jaber stated.

What is more, Dr. Al Jaber stressed that this year will be crucial to bring all stakeholders to the table, from investors and industry to civil society and academia, to work on practical solutions; forge true partnerships and further identify investment opportunities, as the UAE sets on a path “toward the next 50 years” and prepares for a future that will require more energy with less environmental impact.

It is said that Al Jaber’s statements was made during the opening of the Atlantic Council Global Energy Forum taking place in the nation’s capital, Abu Dhabi as part of the Abu Dhabi Sustainability Week, ADSW.

The two-day Atlantic Council Global Energy Forum has been convened in partnership with the UAE Ministry of Energy, ADNOC, and Mubadala Investment Company as part of ADSW.

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In July, the Abu Dhabi National Oil Company (ADNOC) signed a partnership framework agreement and a JV agreement worth up to $12 billion with China’s Wanhua Chemical Group. The deal foresees collaboration in the downstream sector, according to ADNOC. The agreement was inked on the sidelines of a three-day state visit to China by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.

The parties signed a shipping joint venture agreement building on a 10-year LPG supply contract signed in November 2018.

Under the shipping joint venture, ADNOC Logistics & Services and Wanhua Chemical will establish a partnership for LPG transportation including the operation of two VLGCs, or Very Large Gas Carriers.

In April, the first-ever shipment of UAE-produced calcined coke has started its maiden voyage to mainland China. 10,500 tons of calcined coke were loaded by ADNOC Refining onto the M/V Lucky Ocho, a vessel chartered by ADNOC Logistics & Services, to be delivered in Yantai, China by the end of April 2019.

The first shipment of this product represents the latest milestone in ADNOC’s attempt to reduce production of high-sulphur fuel oil and move towards being a ‘zero-fuel oil’ refining business. ADNOC made zero-fuel oil refining a high priority when IMO’s 2020 Regulation was first proposed.

In this aspect, ADNOC commissioned, in September 2018, its multi-billion-dollar Carbon Black and Delayed Coker Unit. The Unit, which produced the UAE’s first-ever calcined coke, enables ADNOC to extract the maximum value from sulphur-heavy ‘bottom-of-the-barrel’ oils and slurry, as it delivers on its Downstream strategy.

ADNOC on track to boost oil production to 4 million bpdADNOC on track to boost oil production to 4 million bpd
ADNOC on track to boost oil production to 4 million bpdADNOC on track to boost oil production to 4 million bpd
Tags: oiloil and gas industryrenewable energysolar powerUAE
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