The mantra guiding each and every one of ADNOC’s recent moves is that of becoming “self-sufficient” in the least amount of time possible. If we take a look at what the Abu Dhabi National Oil Company has been doing over the past year, this becomes abundantly clear. In October, the company raised $1.1b for the IPO of its drilling unit by promising investors that the funds would be used to diversify and expand its business operations. The company lost no time, and less than a month later, it announced two new massive projects (talk about putting money where your mouth is).
ADNOC is committed to spending $6b to grow its drilling business as it boosts its crude oil production capacity to 5 million barrels per day by 2030. This huge investment looks to make the UAE self-sufficient in gas production. ADNOC has also pledged to develop a blue ammonia production facility with a potential capacity of 1,000 kilotonnes per year. This expansion will come in the form of a one-of-a-kind JV with Japan’s Mitsui & Co and South Korea’s GS Energy Corporation.
why it matters
Under ADNOC's in-country value program, up to 60% of the total value of the investment has the potential of flowing back into the UAE's economy, providing significant resources for supporting local businesses.