UAE brings forward oil production capacity expansion to 2027

Credit: REUTERS/Christopher Pike

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DUBAI, Nov 28 (Reuters) - The board of Abu Dhabi's ADNOC [RIC:RIC:ADNOC.UL] endorsed plans on Monday to bring forward the company's five million barrel per day oil production capacity expansion to 2027 from a previous target of 2030, the state oil firm said in a statement.

The new date will provide ADNOC with the flexiblity to meet rising global energy demand, it said.

The United Arab Emirates' hydrocarbon reserves increased by 2 billion stock tank barrels (STB) of oil and 1 trillion standard cubic feet (TSCF)of natural gas in 2022.

The additional reserves increase the UAE's reserve base to 113 billion STB of oil and 290 TSCF of natural gas, ADNOC said.

ADNOC's board of directors, which was chaired by the UAE's President Sheikh Mohammed bin Zayed on Monday, also approved the creation of ADNOC Gas.

A gas processing and marketing entity to be effective from January, the company will combine the operations, maintenance and marketing of ADNOC Gas Processing and ADNOC LNG into one consolidated entity.

ADNOC said it plans to float a minority stake in the new company on the Abu Dhabi Securities Exchange (ADX) in 2023.

A five-year business plan and capital expenditure of 550 billion dirhams ($150 billion) for the period 2023-2027 was also approved by the board to enable the company's growth strategy.

(Reporting by Maha El Dahan and Alaa Swilam; Writing by Maha El Dahan; Editing by Jan Harvey and Barbara Lewis)

((Alaa.Swilam@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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