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Mohamed bin Zayed chairs ADNOC Board of Directors Meeting at Expo 2020 Dubai

DUBAI, 1st December, 2021 (WAM) — His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Board of Directors of the Abu Dhabi National Oil Company (ADNOC), today presided over the annual meeting of the ADNOC Board of Directors.

During the meeting, which was held in the UAE pavilion at Expo 2020 Dubai, H.H. Sheikh Mohamed bin Zayed conveyed the support and encouragement of President His Highness Sheikh Khalifa bin Zayed Al Nahyan for ADNOC and commended the company’s proactive steps to embrace the energy transition, noting its clean energy partnership with Emirates Water and Electricity Company (EWEC). Sheikh Mohamed lauded ADNOC’s strong performance and its landmark achievements in 2021 that have maximised value and growth opportunities for the UAE.

Other board members that attended the meeting were H.H. Sheikh Hazza bin Zayed Al Nahyan, Deputy Chairman of Abu Dhabi Executive Council; H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office; H.H. Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Crown Prince Court; Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure; Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC; Ahmed Ali Al Sayegh, Minister of State; Dr. Ahmed Mubarak Ali Al Mazrouei, Chairman of the Abu Dhabi Executive Council Office; Khaldoun Khalifa Al Mubarak, Managing Director and Group Chief Executive Officer of Mubadala; Jassim Mohammed Buatabh Al Zaabi, Member of the Executive Council and Chairman of the Abu Dhabi Department of Finance Council; and Awaidha Murshed Al Marar, Member of the Executive Council and Chairman of the Abu Dhabi Department of Energy.

During the meeting, H.H. Sheikh Mohamed bin Zayed underlined ADNOC’s important role as a catalyst for the UAE’s growth and diversification and expressed confidence that the company is well placed to continue to empower the nation’s socioeconomic ambitions as it looks ahead to the next 50 years.

ADNOC is building on this success and today announced a significant increase in national reserves of 4 billion stock tank barrels (STB) of oil and 16 trillion standard cubic feet (TSCF) of natural gas. These additional reserves increase the UAE’s hydrocarbon reserves base to 111 billion STB of oil and 289 TSCF of natural gas, reinforcing the country’s position in global rankings as the holder of the sixth-largest oil reserves and the seventh-largest gas reserves.

Commenting on the achievements, Sheikh Mohamed bin Zayed congratulated ADNOC and said the UAE will continue to responsibly unlock its hydrocarbon resources to drive progress and contribute to global energy security.

As ADNOC unlocks the UAE’s lower carbon oil and gas resources, it is ensuring greater economic value is retained in the local economy through its successful In-Country Value (ICV) programme which is nurturing new business opportunities for the private sector and creating jobs opportunities for UAE Nationals.

Sheikh Mohamed and the board reviewed the ongoing achievements of ADNOC’s ICV programme. Since ADNOC launched the programme in January 2018, it has driven AED105 billion ($28.6 billion) back into the UAE economy and created over 3,000 jobs for UAE Nationals in the private sector, including over 1,000 jobs this year.

The Board of Directors approved ADNOC’s five year business plan and capital expenditure (CAPEX) of AED466 billion ($127 billion) for 2022-2026 to enable its plans to expand its upstream production capacity and downstream portfolio as well as its low carbon fuels business and clean energy ambitions. As part of this plan, ADNOC aims to drive over AED160 billion ($43.6 billion) back into the UAE economy across 2022-2026 through its ICV programme. This will further stimulate growth and diversification and support the objectives of the UAE Principles of the 50 outlined by the wise leadership to usher a new era of economic and social growth over the next 50 years.

The board also approved ADNOC’s New Energies Strategy aimed at further reducing its carbon footprint and enabling it to capitalise on opportunities in renewable energy, hydrogen and other lower carbon fuels. The board noted that ADNOC’s clean energy partnership with EWEC will see up to 100 percent of ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy sources, and concluded it is an important milestone in ADNOC’s journey to a lower-carbon future.

In Downstream and Industry, the board endorsed ADNOC’s plans to evaluate doubling its liquefied natural gas (LNG) production capacity from 6 to 12 million tonnes per annum (MMTPA). The potential expansion of ADNOC’s LNG production capacity is underpinned by the growth in its natural gas position, with new developments planned to add 3 billion standard cubic feet per day (scfd) and more to come from associated gas as it expands its crude oil production capacity.

The board highlighted the progress of the TA’ZIZ Industrial ecosystem in Ruwais and the strong local and international investor interest received, particularly in the TA’ZIZ Industrial Chemicals Zone. The Chemicals Zone, ADNOC’s joint venture with Abu Dhabi Developmental Holding Company (ADQ), is a key pillar of ADNOC’s downstream and industrial expansion strategy and is helping to accelerate the development of Abu Dhabi’s petrochemicals and manufacturing industry. Anchor projects for the world-class chemicals zone are already in the design phase and international partners such as Reliance Industries, Fertiglobe, GS Energy and Mitsui have announced they will partner with TA’ZIZ.

Within the TA’ZIZ Industrial Chemicals Zone, ADNOC is advancing a world-scale low carbon ammonia facility as part of its ongoing efforts to reinforce Abu Dhabi’s leadership in the clean hydrogen economy and capitalise on growing global demand for low-carbon ammonia. The board noted the progress on this front, including ADNOC’s recent sales of low carbon ammonia demonstration cargos produced by Fertiglobe at its Fertil plant in Ruwais to customers in Asia.

In trading, the board recognised the significant strides made by ADNOC’s trading teams following the establishment of two new trading entities – ADNOC Trading (AT) and ADNOC Global Trading (AGT) – over a year ago. The board congratulated ADNOC on the establishment of its trading offices in Singapore, which are the latest step in the growth of its trading businesses.

The board discussed recent developments in oil and gas markets and noted that ADNOC continues to remain agile, resilient and able to quickly adapt to market conditions.

The success of the Murban Futures Contract on ICE Futures Abu Dhabi (IFAD) was also highlighted with the new Murban Futures Contract recently trading over one billion barrels of Abu Dhabi’s flagship low-carbon Murban crude. The board noted that Murban was now more widely available to a broader set of market participants around the globe and is well positioned to act as an important price marker for crude oil.

On this occasion, Dr. Al Jaber said, "ADNOC is very grateful for the support of His Highness Sheikh Mohamed bin Zayed, the Supreme Council for Economic and Financial Affairs and the ADNOC Board of Directors, as their guidance has been instrumental in enabling our robust operational and financial performance and landmark achievements this year. Our progress is as a result of the wise directives of the UAE’s leadership and the hardwork and dedication of all my colleagues at ADNOC.

"We have laid a solid foundation to ensure ADNOC continues to drive greater and more sustainable value for the UAE during the energy transition. As we build on this foundation, we are capitalising on the many commercial opportunities in this era while strengthening our position as one of the lowest cost and lowest carbon oil and gas producers in the world.

"The Board of Directors’ approval of ADNOC’s Business Plan and New Energies Strategy marks an important phase in our ongoing journey to future-proof our business model. We are confidently moving forward to deliver upstream growth, accelerate the UAE’s industrial development through our downstream expansion, build our trading capabilities and advance our position in hydrogen and clean energy. At the same time, we are creating opportunities for the UAE’s private sector to benefit from ADNOC’s growth and enabling more skilled job opportunities for UAE National talent, in line with the Leadership’s wise directives."

The increase in oil and gas national reserves was driven by ADNOC’s continuous appraisal activities and enabled by best reservoir management practices across its onshore and offshore portfolio as well as leveraging advanced tailored technologies. In addition, maturing development plans towards achieving ADNOC’s 5 million barrels per day (mmbpd) production capacity target by 2030 contributed to the substantial reserves increase.

Around half of the newly added 4 billion STB oil national reserves are Murban-grade crude, Abu Dhabi’s highly sought-after lower-carbon crude grade which has been successfully trading on the ICE Futures Abu Dhabi (IFAD) commodities exchange since March 2021.

The new Murban reserves offer the potential to reinforce the long-term liquidity of the Murban Futures Contract. Furthermore, the increase in oil and gas reserves underpins ADNOC’s objectives of boosting its crude oil production capacity and driving gas self-sufficiency for the UAE. These objectives will be enabled by the growth of ADNOC’s drilling activities, through ADNOC Drilling, as they will require thousands of new wells by 2030.

The latest increase in national reserves follows ADNOC’s announcement last year of the discovery of recoverable unconventional oil resources estimated at 22 billion STB and an increase in conventional oil national reserves of 2 billion STB. Also, in 2019, ADNOC announced national reserves increases of 7 billion STB of oil and 58 TSCF of conventional gas and the discovery of unconventional recoverable gas resources totaling 160 TSCF.

This year ADNOC has delivered several other landmark achievements. These include the largest initial public offering (IPO) in the history of Abu Dhabi’s stock exchange, ADNOC Drilling, which was more than thirty times oversubscribed; the IPO of the world’s biggest shareholder-owned exporter of fertiliser, Fertiglobe, which was more than twenty times over-subscribed; raising $1.64 billion (AED6 billion) through the combined offering of ADNOC Distribution shares and issuance of exchangeable bonds; the successful conclusion of Abu Dhabi’s second exploration block bid round and the signing of a $6.2 billion (AED22 billion) strategic partnership with Borealis to build Borouge 4 in Ruwais.

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Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

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AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

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