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ADNOC named most valuable Emirati brand amidst OPEC’s global energy optimism

The Abu Dhabi National Oil Company has been named the UAE’s most valuable brand of 2021, according to the brand valuation consultancy firm, Brand Finance.

Its report called ADNOC the “most resilient of all National Oil Companies (NOC) globally,” as fluctuating oil prices raised concerns on the longevity of oil in the current market.

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This evaluation follows a January 24 Reuters poll that predicted “Gulf Cooperation Council will grow at their fastest pace in several years.”

Crude oil prices, a major driver for Gulf economies, climbed to their highest since 2014 on January 19, according to the same Reuters report.

Saudi Arabia was predicted to top the list with growth of 5.7 percent, followed by Kuwait and the UAE with 5.3 percent and 4.8 percent respectively.

As for ADNOC, since Dr. Sultan Ahmed al-Jaber took over as CEO in 2016, the oil company has raised $64 billion as it embraces and thrives within the Energy Strategy 2050, which aims to increase the contribution of clean energy in the total energy mix from 25 percent to 50 percent by 2050 and reduce carbon footprint of power generation by 70 percent.

The Brand Finance report boldly claims that due to ADNOC’s “competitive advantage in cost and carbon efficiency per barrel of oil produced, it is a likely contender to be ‘the last barrel standing’ in the ongoing transition to a low carbon economy.”

To reflect that prediction, ADNOC has announced a range of diversified investments in hydrogen and ammonia production, in an attempt to keep up with the energy transition.

In a statement on ADNOC’s website, it claims to be a producer of over 300 kilotons per year of hydrogen, which is reportedly being used for industrial purposes.

It has “plans to increase Hydrogen production to 500 kilotons per annum and is exploring several new growth opportunities,” the statement said.

In May 2021, ADNOC declared that it would advance a million tons per annum blue-ammonia production facility in Abu Dhabi, later announcing a partnership with Fertiglobe.

The company, which produces primarily oil, has already sold blue-ammonia to three Japanese clients, as ADNOC revealed themselves immediately after the August 2021 deals closed.

ADNOC also entered an agreement with a local utility firm to supply up to 100 percent of its power grid with nuclear and solar energy sources in yet another drive to achieve net zero emissions by 2050.

This paradigm shift has included a “new approach to smart partnerships, creating investment opportunities to attract foreign capital, launching a successful program to enhance in-country value, implementing three successful IPO subscriptions to ADNOC Distribution, ADNOC Drilling, and Fertiglobe, among other initiatives,” according to the official state media WAM.

In early January, OPEC reported that global demand for oil is expected to remain “robust” in 2022 and overcome short-term disruption caused by the omicron coronavirus variant.

Total global consumption is expected to reach 100.8 million barrels per day this year, according to the same report.

UAE Energy Minister Suhail al-Mazrouei, also confirmed during Abu Dhabi Sustainability Week that the country is continuing its efforts to increase oil supply to 400,000 barrels per day, as reported by Reuters.

In the same statement, al-Mazrouei also called on all producing countries and international oil companies to invest in hydrocarbons to “ensure a smooth energy transition.”

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Abu Dhabi’s Borouge petrochem firm secures anchor investors including India’s Adani

Abu Dhabi-headquartered petrochemicals firm Borouge said on Monday it secured seven cornerstone investors, including India’s wealthy Adani family for its $2 billion initial public offering (IPO).
The Abu Dhabi National Oil Company and Borealis’ joint venture set the offer price for its IPO at 2.45 dirhams ($0.67) a share, which implies an equity value of $20 billion, it said in a statement.

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Borouge said it secured a total commitment of about $570 million from Abu Dhabi state holding firm ADQ, the Abu Dhabi Pension Fund, the Emirates Investment Authority, India’s Adani family and entities controlled by International Holding Company, Multiply Group, and Alpha Dhabi.
Books for the initial public offering were covered in about an hour after opening, a bookrunner on the deal said. ADNOC declined to comment.
The company, whose products are used in items such as cars and food packaging, said last week that its offering will consist of approximately 3 billion existing shares, representing 10 percent of the company’s issued share capital.
Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through sales of stakes in energy assets, capitalizing on a rebound in crude prices to attract foreign investors.

Read more: ADNOC and Borealis to float 10 pct stake of joint venture polymer giant Borouge

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Biden says he’ll review Trump’s China tariffs, fueling yuan rally

China’s offshore yuan extended its advance after US President Joe Biden said he’ll discuss tariffs on Chinese imports with Treasury Secretary Janet Yellen upon return from his Asia trip.

The currency jumped as much as 0.7 percent to 6.6549 per dollar, the strongest level since May 5. It had risen 1.5 percent last week, the most since 2020, in response to easing lockdowns in Shanghai. Sentiment was also boosted by the reduction of a key interest rate for long-term loans on Friday by Chinese banks.

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“A reduction of US-China tariff is taken to be positive for US-China relations and that translates to yuan gains,” said Fiona Lim, a senior currency analyst at Malayan Banking Bhd. “However, we are wary that mentions of tariff reduction have surfaced time and again,” she said.

Biden has maintained most of the tariffs imposed by his predecessor, Donald Trump, including duties on more than $300 billion in Chinese imports.

But the president has come under pressure from some economists and lawmakers and the US Chamber of Commerce to reduce or eliminate the tariffs with inflation running at the hottest pace in four decades.

US economists say lifting the tariffs would help to ease inflation, but aides within the administration don’t to want to suspend tariffs and risk appearing soft on China ahead of the November midterms.

Other Asian currencies along with the Australian dollar received a boost from Biden’s comments. The Aussie rose as much as 1.2 percent to 0.7126 per greenback at 3:01 pm in Hong Kong.

Any easing of tensions between US and China can set a more benign environment for constructive Aussie-Sino relations as well, Maybank’s Lim added.

Read more: Biden says willing to use force to defend Taiwan

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Iran and Oman agree on panel to jointly develop shared oilfield: Fars news

Iran and Oman have agreed to form a committee to jointly develop the Hengam oilfield, which straddles both countries’ sea border, Iran’s semi-official Fars news agency reported its oil minister Javad Owji as saying on Monday.
In 2005, both countries signed a memorandum of understanding to jointly develop the Hengam oil field but the agreement did not materialize and Iran decided to develop the field independently in 2012.

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“As the first basis of my talks with Omani Oil Minister Mohammed bin Hamad Al-Rumhi, it was agreed to form a joint technical committee to develop the next phases of the Hengam oil field in a seamless manner between Iran and Oman,” Owji said.
“Joint exploitation, in contrast to competitive exploitation, will be mutually beneficial to both countries as this method leads to less damage to the reservoir and allows for more extraction,” the oil minister added.
Last week, Iran’s state news agency IRNA reported that Owji had agreed to revive a long-stalled project to lay an undersea pipeline to carry gas to Oman.

Read more: Iran to revive gas pipeline project to Oman: IRNA

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