More deals and partners to come for Adnoc after landmark 2018, says Sultan Al Jaber
A number of transactions are being lined up for 2019, according to oil group’s chief executive
The Abu Dhabi National Oil Company plans to conclude new transactions and partnerships next year as it builds on a landmark 2018, during which it secured billions of dirhams in fees and customers for almost half the country’s crude for the coming four decades.
Adnoc will also identify new investment opportunities in 2019, said Dr Sultan Al Jaber, group chief executive and a UAE Minister of State.
“We have a number of exciting transactions and partnerships in the pipeline that we look forward to delivering in the year ahead as part of our 2030 smart growth strategy,” he said.
The company did not provide further details on the nature of the potential investments and deals.
Dr Al Jaber also said the company would remain vigilant to global market dynamics.
The outlook for the energy sector has become more bearish in recent weeks, with US oil production at a record high, Brent crude prices 40 per cent lower since early October and the global economic picture affected by trade tensions.
Adnoc intends to build on a very active past 12 months during which it announced a huge volume of investments, concessions and partnerships.
These include Dh29.1 billion in offshore concession participation fees and the securing of markets for 40 per cent of the UAE’s oil for the next 40 years, it said, including deals with Spain’s Cepsa, Japan’s Inpex, an ONGC Videsh-led consortium from India and Austria’s OMV.
Over the life of the concessions, many more millions of dirhams will be generated as oil production increases and new markets are secured, said Adnoc.
There have also been a number of gas-focused production deals signed to support the drive for self-sufficiency.
There is also immense future potential in refining and petrochemicals in the key markets of China and India after a number of agreements were made in the downstream segment this year.
Reflecting on 2018, Dr Al Jaber, said the company’s responsibility “remains as true today as it did when it was first established: to create, maximise and deliver economic value for our country, enabling its growth and prosperity”.
“In this spirit, we remained true to the transformation journey we embarked on in early 2016 and maintained the same underlying focus on improving performance, driving efficiencies and strengthening profitability,” he said.
The rapid and comprehensive change-strategy in place since Dr Jaber became chief executive almost three years ago is aimed at optimising resources and efficiency, strengthening overall performance and fostering a more commercial culture.
This year, Adnoc has also stepped up the use of hydraulic fracturing technology, putting the UAE at the forefront in the Middle East in terms of exploring for gas onshore via "fracking".
US oil services provider Baker Hughes, which has bought a $550 million 5 per cent stake in Adnoc’s drilling subsidiary, should be able to fast track Abu Dhabi’s fracking capabilities and give a boost to the commercial potential of these unconventional resources by reducing costs.
There will be a focus on further leveraging the operational benefits of digital technology in 2019, Dr Al Jaber said.
For example, Adnoc is working with IBM to pilot a blockchain-based automated system to integrate all of its oil and gas production.
Updated: December 30, 2018 11:39 AM