Amid the global calls to diversify the international energy market, some nations and companies are standing firm and investing heavily in the conventional energy market in preparation for an increase in demand for oil and gas. One such company is ADNOC, the Abu Dhabi-based state-owned company recently outlined a significant investment plan that aims to increase spending on the upstream sector. Additionally, the company has reported significant increases in major oil and gas reserves.
ADNOC recently announced a new $150 billion investment plan for its upstream projects
The United Arab Emirates has been built on the upstream sector; the nation went from being a land populated by desert to becoming one of the richest countries on the planet. This can be attributed to the substantial natural energy resources that can be found in the Middle East. Oil and gas production have become the backbone of the nation’s economy.
Recently, the state-owned ADNOC unveiled a new investment plan to spur increased levels of gas and oil production. The company is earmarking a potential $150 billion investment in its upstream market. Additionally, ADNOC has increased the UAE’s oil reserves base to 120 billion stock tank barrels, while also boosting the gas sector reserves to 297 trillion cubic feet.
ADNOC to spend heavily on the gas and oil sector over the next five years
The company has become the jewel of the UAE’s energy sector through strategic investments that have stood the test of time. Notably, ADNOC plans to invest the multi-billion-dollar financing package for the upstream oil and gas sector over the next five years, marking the continued increase in investments in the nation’s plan for the conventional oil and gas sector.
ADNOC’s strategic investment plan has led to astonishing gas and oil production levels
At a recent meeting in Abu Dhabi, ADNOC’s board of directors welcomed the new addition of oil and gas reserves that are a direct result of the company’s strategic investment in the upstream market over the last few years. ADNOC has been attracting new international investors in its unconventional exploration concessions to boost gas and oil production in the coming years.
Unconventional exploration concessions refer to the advanced extraction methods required for certain upstream energy projects, which ADNOC has become exceedingly proficient at. According to the latest statement from ADNOC, the UAE’s unconventional resources are sitting at an estimated 160 tcf of gas and 22 billion stb of oil.
ADNOC’s investment arm has reported substantial growth since being launched
ADNOC’s investment arm, XRG, has reported astonishing growth since it was launched in November last year, noting growth from around $80 billion to an incredible $151 billion over a one-year period. The increased levels of investment come as other nations report advancements in significant upstream projects, such as Conrad’s recent final investment decision for an Indonesian gas project.
Additionally, XRG has outlined plans to develop a diversified global portfolio across chemicals, natural gas, and renewables, reducing the UAE’s reliance on energy exports as a major revenue source.
The global upstream sector has been growing, despite calls to integrate renewable energy projects
The UAE’s investment plan comes as the rest of the world is fostering new investments in its own upstream energy markets. Shell recently signed off on a new upstream project in Nigeria, exemplifying the international revival of the upstream sector in the face of overwhelming calls to integrate the renewable energy market at an accelerated rate. The UAE’s ADNOC has become the backbone of the international upstream sector following several years of increased investments in the only viable, large-scale energy resources that the world has relied on for generations, and will continue to do so for the foreseeable future.
