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KEY PORTFOLIO BOOST

Adnoc, ExxonMobil CEOs discuss new opportunities

ABU DHABI, May 7, 2019

Abu Dhabi National Oil Company (Adnoc) is exploring new opportunities with Exxon Mobil for collaboration in the upstream and downstream sectors, and also wider regional and business-related developments of mutual interest, said a top official.

The Abu Dhabi firm is leveraging mutually beneficial partnerships to drive new commercial opportunities and expand its portfolio across the upstream and downstream sectors, to enable the UAE’s socio-economic development objectives, remarked Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and Adnoc Group CEO.  

The discussions coincided with a joint visit to review the progress of the over $30 billion expansion taking Upper Zakum to a production capacity of 750 thousand barrels per day (mbpd) and 1 million barrels per day (mmbpd) respectively, with the latter planned for 2024, stated Dr Al Jaber after holding discussions with Darren W. Woods, Chairman and CEO of Exxon Mobil Corporation (ExxonMobil),

Dr Al Jaber said: "Our partnership with ExxonMobil going back 80 years reflects the strong, deep-rooted and long-standing economic and political ties between the UAE and the US."

"At Adnoc, we continue to place great importance on our strategic partnerships with the US energy sector, which has contributed to further enhancing the economic relations between our two countries," he noted.

"Our existing partnership with ExxonMobil on the Upper Zakum field is a prime example of how Adnoc engages with world-class partners that bring expertise and advanced technology to unlock value from our resources, for mutual benefit, and deliver the greatest possible returns to the UAE. We are keen to strengthen this strategic partnership across the entire value chain, as we accelerate delivery of our 2030 smart growth strategy," he added.

During the visit, Dr Al Jaber and Woods inspected key facilities at Al Ghallan Island which is under development for future production as part of the ongoing project, known as UZ750, to increase the production capacity of the Upper Zakum field to 750 mbpd.

Woods said, "We have shared many successes in the UAE together over the past 80 years, most notably with Adnoc in the Upper Zakum joint venture, and we look forward to building on this strong foundation. The joint success between Adnoc and ExxonMobil on Upper Zakum is a testament to what is possible when national and international energy companies work together."

The UZ750 project, which is likely to see an investment of around $21.8 billion, comprises four new artificial islands, to accommodate drilling rigs, processing facilities and infrastructure required to handle production capacity growth to 750 mbpd, effectively creating an onshore environment offshore.

Dr Al Jaber and Woods discussed the new substantial conventional and unconventional oil and gas exploration opportunities in Abu Dhabi, following Adnoc’s announcement, last week, to offer five major offshore and onshore blocks for competitive bidding.

The CEOs also discussed downstream investments, including gas and liquefied natural gas (LNG) opportunities, following Adnoc’s 2018 announcement of ambitious expansion plans in Petrochemicals and Refining, said the top official.

ExxonMobil and Adnoc share a long history of technical collaboration in the downstream business both through licensing of technologies as well as support in catalysts. Both companies are exploring means by which this relationship can be extended further into research and development (R&D).

The visit follows the award, in April, by Adnoc and its joint venture partners, ExxonMobil Abu Dhabi Offshore Petroleum Company Limited and Inpex Corporation of a Front-End Engineering Design (Feed) contract to increase the production capacity of the Upper Zakum oilfield to 1 mmbpd by 2024.

The 1 mmbpd expansion project, which is an integral component of Adnoc’s plan to increase its oil production capacity to 4 mmbpd by 2020 and 5 mmbpd by 2030, is estimated to cost $8 billion, including drilling-related expenditure. It will capture synergies from the existing UZ750 project, optimizing costs and maximizing value for Adnoc and its partners.

The Upper Zakum oilfield, located offshore Abu Dhabi, is the second-largest offshore oilfield and the fourth-largest oilfield in the world.-TradeArabia News Service




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