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“We see the dynamics of the gas and we like to be part of that solution .. or producing more gas, growing the gas business in Abu Dhabi through ADNOC,” Salem bin Ashoor told S&P Global Platts on the sidelines of the Middle East ExecutivePetroleum Conference in Abu Dhabi.
BP has a 10% stake in ADNOC LNG, the sole producer of the fuel in the UAE. Other shareholders besides ADNOC’s 70% share are Mitsui & Co (15%), and France’s Total (5%).
ADNOC is planning to become self-sufficient in gas production and eventually a net exporter of gas as it expands its production of the commodity. It has awarded stakes to international oil companies to help develop its gas deposits and boost output.
“In the last two years ADNOC LNG tried or changed their operating model to be more flexible to spot cargoes and that is a big shift,” he said. One company in Japan is buying the LNG from ADNOC LNG at a different quantity, he said, decliningto be more specific.
ADNOC is spending $45 billion with partners to boost its refining and petrochemical capacities at the industrial hub of Ruwais, west of the capital of Abu Dhabi. .
State-owned companies are transforming themselves – not just to survive, but to thrive. Many NOCs are opening up, diversifying, driving a new wave of downstream development and trading businesses to reach new markets and evolve beyond just national champions.
BP is also interested in participating in petrochemical projects in Ruwais, bin Ashoor said.
“The change of concept of bringing more players into the downstream is significant,” he said. “You can see the transition in ADNOC’s mindset.”
BP is evaluating participation in ADNOC’s second oil and gas licensing round which was launched this year following its first ever round for six oil and gas blocks, he said.
Bids for the second round are due by the end of November, ADNOC’s head of upstream, Abdulmunim Saif Al Kindy said in May.
Abu Dhabi’s five blocks open for bidding – three of which are offshore and two onshore – are known as Offshore Block 3, Offshore Block 4, Offshore Block 5, Onshore Block 5 and Onshore Block 2, with the latter offering two separate licensingopportunities for conventional and unconventional oil and gas, respectively. In total, the five blocks comprise an area ofapproximately 34,000 km2.
“Definitely if there is a good size opportunity but also commercially rewarding (in the licensing round), we will be more than happy to do more in Abu Dhabi,” bin Ashoor said.
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ADNOC is planning to become self-sufficient in gas production and eventually export gas as it expands its production of the commodity. It has awarded stakes to international oil companies to help develop its gas deposits and boost output