Adnoc announces five-year expansion plan - GulfToday

Adnoc announces five-year expansion plan

Petrol

A general view of an Adnoc gas station. File/ WAM

The Abu Dhabi National Oil Company, adnoc, Distribution, is planning to expand its facilities and investment services around the UAE, especially in Dubai, which currently serves only four stations, announced Saeed Mubarak Al Rashdi, Acting CEO of adnoc Distribution.

The company plans to increase the number of stations in Dubai over the next five years, by constructing a total of 75 new stations, equivalent to 15 new stations per year, he added.

He also revealed that the company’s board of directors decided to construct three more stations in Saudi Arabia, following the success of two stations launched earlier in 2018, which attained profits of over 30 per cent.

In his statement on the sidelines of the First Capital Markets Days in London and New York, Al Rashdi explained that the company’s plan will expand its activities in Saudi Arabia, to include fuel services, cars washes, and restaurants.

He also stressed that the company achieved such growth due to its stature as the UAE’s leading fuel supplier as well as the country’s top retail and business services provider, obtaining a profit margin of 10 cents per litre of fuel since August 2015.

Al Rashdi expects the company to achieve ongoing growth in its local and international fuel operations, while noting its plan to expand its retail operations related to fuel and non-fuel products to new countries, along with Saudi Arabia.

“We want to explore investment opportunities in new markets outside the UAE, to meet our minimum target of achieving a 15 per cent profit margin from our investments,” he stated.

The expansion of the company’s fuel sector and business services sector will benefit the UAE and the Gulf region, and the company will then expand its activities to neighbouring countries, Al Rashdi concluded.

Adnoc and ExxonMobil CEOs Discuss New Opportunities During Visit to Review Progress of US$ 30 Billion Upper Zakum Expansion

 CEOs review the progress of the Upper Zakum Development as the project remains on track to hit 1 mmbpd production capacity by 2024

 Project and drilling-related investments to take Upper Zakum to 750 mbpd equal US$ 22 billion with additional spend of more than US$ 8 billion expected to take project to 1 mmbpd

 CEOs also discuss substantial new conventional and unconventional exploration opportunities in Abu Dhabi

 Meanwhile, Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of the Abu Dhabi National Oil Company (Adnoc), and Darren W. Woods, Chairman and CEO of Exxon Mobil Corporation (ExxonMobil), met to explore new opportunities for collaboration in the upstream and downstream sectors, and discuss wider regional and business-related developments of mutual interest.

The discussions coincided with a joint visit to review the progress of the over US$ 30 billion (Dhs 110 billion) expansion taking Upper Zakum to a production capacity of 750 thousand barrels per day (mbpd) and 1 million barrels per day (mmbpd) respectively, with the latter planned for 2024.

Adnoc is leveraging mutually beneficial partnerships to drive new commercial opportunities and expand its portfolio across the upstream and downstream sectors, to enable the UAE’s socio-economic development objectives.

Dr. Al Jaber said: “Our partnership with ExxonMobil going back 80 years reflects the strong, deep-rooted and long-standing economic and political ties between the UAE and the US. At Adnoc, we continue to place great importance on our strategic partnerships with the US energy sector, which has contributed to further enhancing the economic relations between our two countries.

 “Our existing partnership with ExxonMobil on the Upper Zakum field is a prime example of how Adnoc engages with world-class partners that bring expertise and advanced technology to unlock value from our resources, for mutual benefit, and deliver the greatest possible returns to the UAE. We are keen to strengthen this strategic partnership across the entire value chain, as we accelerate delivery of our 2030 smart growth strategy.”

During the visit, Dr. Al Jaber and Mr. Woods inspected key facilities at Al Ghallan Island which is under development for future production as part of the ongoing project, known as UZ750, to increase the production capacity of the Upper Zakum field to 750 mbpd.

They also planted a Ghaf tree on the island, celebrating the UAE’s national tree and official symbol of the ‘Year of Tolerance.’ The evergreen tree, native to the desert, is an important part of the UAE’s rich heritage, symbolizing resilience, unity, and peace.

 Woods said: “We have shared many successes in the UAE together over the past 80 years, most notably with ADNOC in the Upper Zakum joint venture, and we look forward to building on this strong foundation.”

WAM