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ADNOC sets up debt issuing unit amid 2030 plan to boost oil production capacity

Highlights

Unit will explore potential funding opportunities

ADNOC is spending $127 bil over 2022-2026

Boosting oil production capacity by 25% by 2030

  • Author
  • Dania Saadi
  • Editor
  • Jonathan Fox
  • Commodity
  • Natural Gas Oil

Abu Dhabi National Oil Co. has set up a new debt issuing unit to help fund its projects, which include an oil production capacity boost to 5 million b/d by 2030 from about 4 million b/d now.

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ADNOC Murban, the new entity, "intends to closely monitor market conditions and explore potential funding opportunities," the parent company said in a statement Jan. 25.

ADNOC is forging ahead with an expansion of its hydrocarbons and low-carbon businesses under a plan to spend Dirhams 466 billion ($127 billion) over 2022-2026.

ADNOC's board approved the new capital expenditures, the company said in a statement Dec. 1. Last year's five-year capex plan was for Dirhams 448 billion ($122 billion).

UAE's biggest energy producer also announced an increase in national reserves of 4 billion stock tank barrels of oil and 16 Tcf of natural gas, bringing the UAE's hydrocarbon reserves base to 111 billion barrels of oil and 289 Tcf of gas. Around half of the newly added 4 billion barrels of oil is Murban-grade crude, which has been trading on the ICE Futures Abu Dhabi commodities exchange since March.

The capex spending will allow ADNOC to expand its upstream production capacity and downstream portfolio as well as its low carbon fuels business and clean energy ambitions, the company said.