ADNOC on pace to hit 4 million b/d crude production target by year-end: CEO

Abu Dhabi — Abu Dhabi National Oil Company is "well on track" to increase its crude oil production capacity to 4 million b/d by the end of the year, its CEO said Saturday.

Abu Dhabi is also "on a path" to achieve gas self-sufficiency and eventually become a net exporter, ADNOC CEO Sultan al-Jaber said.

"We will continue to responsibly grow our hydrocarbon resources," he told the Atlantic Council Global Energy Forum in Abu Dhabi.

The UAE's current crude production capacity is 3.4 million b/d, according to the International Energy Agency, but the country has been reining back its output in accordance with the OPEC+ supply cut accord aimed at propping up the oil market.

The UAE pumped 3.04 million b/d in December, according to the latest S&P Global Platts survey of OPEC production. ADNOC produces almost all of the UAE's crude production.

MURBAN FLAGSHIP

ADNOC in November announced several initiatives to boost its production capacity, including one for its flagship onshore crude grade Murban that will underpin a new futures contract.

ADNOC, the Intercontinental Exchange and nine energy companies will launch an exchange in Abu Dhabi in the first half of 2020 for the Murban contract. Production of the grade is around 1.7 million b/d, or more than 50% of the UAE's crude oil output.

Jaber called Murban the "crude of choice" for refineries in Asia and said the new futures market will replace retroactive pricing for its crude exports with forward pricing.

"This will benefit our customers, drive additional value and create an oil market that is more efficient," he said.

Beyond hydrocarbons, Jaber also touted the UAE's expected start-up of its first nuclear power reactor this year, as well as continued operation of the Middle East's first CCUS facility, which captures 800,000 mt/yr of CO2 and will be expanded more than five-fold in the next 10 years.

The efforts are part of the UAE's aim to diversify its energy sources.

"Both short term and long term demand for energy remains very robust," Jaber said.

--Dania Saadi, dania.el.saadi@spglobal.com

--Herman Wang, herman.wang@spglobal.com

--Edited by Claudia Carpenter, claudia.carpenter@spglobal.com