ADNOC Reinforces Role of Long-Term Value Add, Strategic Partners in Delivering Growth Strategy
Tokyo – April 4, 2017: Technology and strategic, value add partnerships are the key to ADNOC’s growth plans, as the company seeks to ambitiously expand its business by opening new markets and offering new, diversified and high-value products, according to His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.
Speaking at Gastech, the world’s leading gas and LNG conference and exhibition, taking place in Japan, H.E. Dr Al Jaber said the industry needs to collectively rethink its partnership models in response to changing market dynamics.
“In this new energy era, the success of our industry and our companies will be driven by long-term, value-add and integrated partnership models across the value chain that leverage innovative technology and market access,” Dr Al Jaber said. “Such integrated partnerships will require energy companies to think, plan and act differently to deliver future growth.”
He emphasised technology and partnerships are at the heart of ADNOC’s growth strategy and five-year business plan, which is focused on driving efficiency, improving performance and maximising value to deliver a more profitable upstream, a more valuable downstream, a more economic and sustainable supply of gas and world class talent.
“At ADNOC, we have set forth on an ambitious growth plan and invite the industry to join us on our journey by shaping strategic partnerships that deliver technology, enhance market access and leverage value across our integrated upstream, midstream and downstream portfolio,” H.E. Dr Al Jaber said.
“In particular, we see tremendous opportunity in capitalizing on emerging global downstream growth, which represents the fastest growing segment of the energy industry. We will work closely with industry partners who appreciate the scale of the opportunity, share our values and are willing to take risks in search of greater and stable rewards as we aim to grow new markets and offer new, diversified and high-value products to those markets.”
ADNOC’s growth strategy aims to increase upstream capacity and expand its portfolio of downstream products. The company’s crude capacity output is slated to increase to 3.5 mbd by 2018 while its sour gas production, from its Al Hosn facility, will be expanded by 50 per cent. ADNOC has also placed significant focus on its downstream business with plans to triple production of petrochemical and higher value products.
Technology, which is transforming the oil and gas industry, is a key enabler of ADNOC’s strategy and will ensure the company maintains its competitiveness, grows sustainably and takes full advantage of market opportunities.
“The development and application of innovative technology across the entire value chain of our business will be essential to driving efficiency, performance and maximizing value from every barrel we produce. We are especially focused on applying enhanced oil recovery technology to improve production levels and enhance value from our existing reservoirs,” said Dr. Al Jaber.
ADNOC’s path to becoming a more commercially focused, performance-led organization is supported by four key pillars - People, Performance, Profitability and Efficiency - and is underpinned by an unwavering commitment to HSE and asset integrity.
Addressing an audience of the world’s most influential gas and liquefied natural gas leaders, H.E. Dr Al Jaber said Asia is an increasingly important market for energy producers, noting its share of global gas imports will grow from half to two thirds of demand by 2040, as global demand increases by 70 per cent.
While advances in technology, combined with enhanced recovery techniques that are maximising productivity, are enabling producers to keep pace with the growth in demand, H.E. Dr Al Jaber said a lack of investment in infrastructure needs to be addressed.
“Today, what is needed is better infrastructure that efficiently links producers to end users,” he said. “This will require nearly 3 trillion dollars in investment, according to the IEA, to upgrade the global gas distribution system, between now and 2040.
“That is a level of funding that can only be achieved through creative, committed long-term partnerships at every level, between companies, between countries, and between the public and private sectors.”
Hailing the United Arab Emirates and ADNOC’s ties with Japan, H.E. Dr Al Jaber, described Japan as one of “ADNOC’s longest-standing partners and customers”, pointing out ADNOC delivers one-third of Japan’s oil and has been a reliable supplier of natural gas for over four decades.
“Our experience with Japan is a clear example of how partnerships can advance industry, deliver economic growth and enable social progress,” he added.
ADNOC has embarked on a journey to drive efficiencies, enhance performance and maximize value for its shareholders, the UAE economy and society at large. An essential element of the strategy is forging new partnerships throughout every aspect of its upstream and downstream businesses. ADNOC’s participation in Gastech is part of a series of global engagements signalling ADNOC’s readiness to work with innovative, value add partners across the oil and gas value chain.
H.E. Dr Al Jaber concluded: “We invite the industry to join us on our journey to push the boundaries of the possible, open up new frontiers and together drive the engines of prosperity.”