Abu Dhabi-based oil firm to raise investments to Dh120b next year
May 19, 2015
Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) is on track to hit the emirate’s target of raising oil production to 3.5 million barrels per day (bpd) in 2017, with plans to expand refining capacity to 920,000 bpd.
The company is also backing its growth with increased investments next year of Dh120 billion — up from this year’s Dh91 billion, according to Saif Al Gafli, chief executive officer of Al Hosn Gas, a joint venture between Adnoc and Occidental Petroleum.
Adnoc’s plans will see investments of Dh119 billion in 2017, Dh72 billion in 2018 and Dh66 billion in 2019, the CEO said.
Speaking at the Al Gharbia Development Forum on Tuesday, Al Gafli said that Abu Dhabi’s Western Region was an important hub for oil, with 90 per cent of the emirate’s oil and gas coming from there.
The Western Region is expected to see significant growth in the next five years, with Adnoc and other companies set to boost their investments there. This will double the region’s gross domestic product from Dh250 billion to Dh500 billion by 2030.
The event saw officials from various public and private entities discuss projects and the need to raise in the Western Region.
Mohammad Al Fahim, regional head of global wholesale banking at Abu Dhabi Islamic Bank, said the bank is expected to finance more projects in the region.
“We can go into different industries, and [whatever] industries are there,” Al Fahim said. “Oil and gas, real estate, [tourism], we can tap into any of these markets depending on the feasibility of it. We have financed companies in the Western Region, and we have already partnered with some.”
The bank is also looking to finance more small and medium enterprises to boost the sector. Additionally, industry experts discussed improving infrastructure in the Western Region, with the Abu Dhabi Water and Electricity Authority citing Al Mirfa Station, which will have a 1,600 megawatt capacity by July 2017.
A Musanada spokesperson added that there were developments on the roads, with the Dh5.3 billion development on Al Mafraq-Ghweifat Road now 76 per cent complete.