ADNOC To Seize Opportunities To Further Unlock Value As It Builds On Momentum Of Successful ADIPEC
The Abu Dhabi National Oil Company, ADNOC, is set to seise opportunities to further unlock value from its assets and resources as it builds on the momentum of a successful virtual edition of the Abu Dhabi International Petroleum Exhibition Conference, ADIPEC.
Provisional figures show that over 80,000 viewers from around the world tuned into ADIPEC’s strategic and technical sessions, with almost 40,000 viewers streaming the opening ceremony.
At the 4-day event, ADNOC made a series of strategic announcements that highlighted its drive to capture greater value across its portfolio and build long-term resilience as it pursues smart growth.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Group CEO, said, "During ADIPEC, we made several important announcements that underscored how ADNOC is reinforcing its resilience and doubling down on value creation to ensure we remain competitive and are well-positioned to help enable the post-COVID recovery by delivering a stable and reliable supply of energy to the world. We have demonstrated significant progress toward our objectives of creating a more profitable upstream business and a more valuable downstream, and enhancing our marketing and trading capabilities. At the same time, we are harnessing technology to reduce costs and maximise performance while strengthening our commitment to responsible production.
"These announcements at ADIPEC and subsequent ones we will be making in the coming weeks and months build on the solid foundation we have laid through our transformation. They will ensure ADNOC continues to deliver long-term and sustainable value to the UAE and remains a primary catalyst for the country’s economic growth and diversification."
Dr. Al Jaber set the ball rolling at ADIPEC with his opening keynote address where he called on the oil and gas industry to unite in driving the post-COVID recovery. He highlighted the resilience of oil demand and stressed the need for the industry to balance caution with optimism, noting that despite the current challenges, there is an opportunity for the industry to examine how it can be more agile and reduce costs.
In the address, he signaled ADNOC is keen to accelerate the progress of the transformation it started four years ago, centered on driving down costs and unlocking value. One way the company is going about this is by leveraging state-of-the-art technologies and this was demonstrated by ADNOC’s tech-driven achievements and milestones at ADIPEC.
ADNOC announced it unlocked $2 billion (AED7.36 billion) in cost savings over the past five years by leveraging advanced technologies, digitisation and integrated drilling services (IDS) to enhance drilling operations.
Before this announcement, ADNOC revealed it had completed the first phase of its large-scale multi-year predictive maintenance project to maximise asset efficiency and integrity across its upstream and downstream operations. The predictive maintenance project is utilising artificial intelligence (AI) technologies such as machine learning and digital twins to deliver maintenance savings of up to 20%.
ADNOC’s focus on harnessing technology to unlock solutions was also on display on the eve of ADIPEC when AIQ – ADNOC’s joint venture (JV) with Group 42 (G42), an Abu Dhabi-based AI and cloud computing company – signed a strategic framework to collaborate on the development of AI, machine learning and data solutions for the oil and gas industry.
As ADNOC looks to further unlock value through technology, it is driving growth by expanding its downstream business. At ADIPEC, ADNOC and ADQ – one of the region’s largest holding companies – unveiled TA’ZIZ, their JV established to drive the development of industrial projects within the planned Ruwais Derivatives Park and act as a catalyst for the UAE’s economic diversification and technology-led growth. ADNOC’s downstream expansion provides a great opportunity for partners to invest alongside ADNOC as it strengthens the UAE’s industrial base and increases in-country value.
ADNOC is also driving growth by expanding into new liquefied natural gas (LNG) markets. This was highlighted by the LNG supply agreements ADNOC LNG – a subsidiary of ADNOC – signed with Vitol, the world’s largest independent energy trader, and TOTAL, at ADIPEC.
In its upstream business, ADNOC announced a significant milestone in its objective of enabling gas self-sufficiency for the UAE with the first delivery of unconventional gas from the country, following ADNOC and TOTAL’s achievement in unlocking gas from the Ruwais Diyab concession located 200 kilometers west of Abu Dhabi city.
ADNOC also announced a strategic framework agreement with TOTAL to explore joint research, development and deployment partnership opportunities in the areas of CO2 emission reductions and carbon capture, utilisation and storage (CCUS).
Other headlines at ADIPEC include the acquisition of an Ultramax bulk carrier by ADNOC L&S – a subsidiary of ADNOC – and the 6th Abu Dhabi CEO Roundtable which saw ADNOC convene over 30 of the world’s leading oil, gas, and petrochemical chief executives in a virtual roundtable to address key issues facing the industry.