Why 2020 was a milestone year for Adnoc

Throughout 2020, which includes been challenging year for the strength industry globally, Abu Dhabi National Oil Company worked to make sure continuity of supply and reached a fresh milestone in output capacity, which surged to 4.2 million barrels per day in April.

Adnoc also forged several agreements with global asset managers across its worth chain which attracted $16.8 billion in foreign direct investment into the UAE, now ranked 19 globally in conditions of FDI flows.

In the midstream segment, Adnoc attracted a consortium of the world’s top rated infrastructure and sovereign wealth funds to its gas pipelines earlier this year. The $20.7bn package was the major such transaction on the strength space this year.

The deal was significant since it happened during the height of the pandemic and showed the creditworthiness of Abu Dhabi and its own low-cost and stable coal and oil assets to global investors.

Global Infrastructure Companions, Brookfield Asset Control, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Plank, South Korea's NH Expense & Securities and Italy’s Snam are investors on the assets. The purchase will unlock $10.1bn in foreign direct purchase into the UAE.

Aside from attracting international investors, Adnoc as well created synergies in the downstream space with a number of prominent area entities. To spur expansion at its Ruwais hub, Adnoc and Abu Dhabi’s professional holding enterprise, ADQ have formed a jv, called Ta’ziz which will target investment in assignments worth $5bn.

The JV can look to purchase chemical projects worth $3bn, with $2bn expected to be spent on the development of port and infrastructure facilities in Ruwais. Chemical substances used in normal water treatment, metallurgy, agriculture, pharmaceuticals, adhesives and cars will come to be among the products shortlisted for further expenditure by the partners. The two businesses are keen to immediate foreign and local shareholders in to the emirate’s Al Dhafra area.

The partnership will generate job opportunities in the local economy and can drive investment flows into a number of ADQ entities, such as for example Emirates Metal, Etihad Rail, Ducab and Arkan.

The Abu Dhabi firm also signed an agreement worth $5.5bn with with Apollo Global Management to lease some of its properties in a long-term basis, within its strategies to unlock capital from non-core assets. THE BRAND NEW York-based alternative asset supervisor and its subsidiaries will receive rental income streams from select Adnoc properties over a period of 24 years.

Direct upfront proceeds of $2.7bn will move to Adnoc from the purchase. The deal proved to be an innovative method for oil and gas corporations to monetise non-main built assets.

Adnoc rounded off 2020 with ideas to invest $122bn over another five years, which $43.5bn will end up being directed towards the neighborhood economy. The company also announced considerable recoverable unconventional oil assets onshore, approximated at 22 billion barrels. There was also an increase of 2 billion barrels in typical oil reserves, which maintains the UAE's job as the holder of the world's sixth largest oil reserves. The country account's for 5.6 per cent of the world's proven oil reserves.

Abu Dhabi's biggest producer joined its global peers in its exploration for new and alternative fuels, since it pledged to lessen its carbon emissions by 25 % over another 10 years.

The group received the green light from Abu Dhabi's Supreme Petroleum Council to establish a 'hydrogen ecosystem' to meet growing global demand for the lighter, cleaner gas that's quickly emerging as a fossil fuel alternative.

Adnoc plans to crank up development of hydrogen, which has already been found in its downstream sector, to meet up global demand for the gas and for ammonia produced from it.

Adnoc continued to expand on its main oil and gas assets, awarding a $519 million deal for onshore and offshore seismic surveys to BGP, a good subsidiary of China National Petroleum Enterprise. The scope contains the world's most significant 3-D study of hydrocarbon assets. Data from the survey will be used in exploration by companions from Adnoc's primary licensing round. Powerful bidders from the next licensing round may also be able to acquire data.