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Monday, January 6, 2025
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Abu Dhabi’s Adnoc eyes faster capacity expansion

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Energy Intelligence understands that the Abu Dhabi National Oil Company (Adnoc) has quietly accelerated the pace of expanding its oil production capacity, and may accelerate the pace further.

Adnoc has officially set 2030 as the target date for reaching 5 million barrels per day of production capacity, but its internal deadline is said to have been brought forward to 2027.

Energy Intelligence understands that the idea of ​​possibly moving the target date up to 2025 has been brought up for an internal review.

However, it is unclear whether this earlier goal is feasible or considered for implementation.

Adnoc declined to comment.

Industry sources previously told the Energy Intelligence Agency that Abu Dhabi, which holds almost all of the United Arab Emirates’ oil and gas reserves, has begun considering plans to increase its oil production capacity to 6 million barrels per day.

If research shows that expanding capacity to 6 mb/d is feasible, reaching that level could take Adnoc six to seven years given the long-cycle nature of the upstream projects and investments required.

Upstream progress

Abu Dhabi has made significant progress in its upstream expansion plans in recent years. Its oil production capacity is currently estimated to be close to 4.3 million barrels per day.

The emirate’s capacity complements neighboring Dubai’s estimated 30,000-40,000 bpd, bringing the UAE’s current overall oil production capacity to just over 4.3 million bpd.

This makes OPEC in the United Arab Emirates the third largest producer after Saudi Arabia and Iraq, which have a production capacity of 12 million bpd and 5 million bpd, respectively.

Actual oil production in the UAE is now close to 3.2 million barrels per day, in line with limits set by the OPEC-plus producer coalition.

At its current capacity, it is estimated that more than 2.2 million bpd is available offshore, while about 2 million bpd is known to be available onshore.

Accelerate change

In July, Adnoc launched a dedicated project management office designed to help companies adapt to the rapidly changing global energy landscape.

So-called 100 times faster The division will accelerate decision-making as Adnoc tackles challenges such as energy transitions, market volatility and changing geopolitical environments.

Late last year, Adnoc’s board approved Increase capital expenditure From $122 billion in 2021-25 to $127 billion in 2022-26.

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