In a break from the energy industry’s current contraction trend of spending cuts, employee layoffs, contract delays and cancellations, Abu Dhabi National Oil Co. (ADNOC) recently announced plans to spend more than US$25 billion on various offshore fields. The capital spend is intended to increase production, and will commence this year and continue until 2020 at a rate of about $2.5 billion per year, according to Arab News.
ADNOC expects its investment to return an increase of crude oil output up to 3.5 MMb/d by 2018, which represents an increase of about 700,000 b/d more than its current production of 2.8 MMb/d. Specifically, the company plans to increase production in its Abu Dhabi Marine Operating Co. fields from the offshore areas of the Emirate of Abu Dhabi, and its ZADCO (a partnership of ExxonMobil, ADNOC and Japan Oil Development Co.) oil fields to 1.6 MMb/d by 2018, up from its current rate of 1.2 MMb/d. ADNOC wants to increase production in its Upper Zakum field to 750,000 b/d by 2018, and to 1 MMb/d by 2024. Overall, ADNOC expects to complete 160 wells per year during the next few years.
ADNOC’s recent exploration and production efforts have focused on assessing undiscovered reserves, optimizing recovery, and improving reservoir management. Altogether, the organization has 15 subsidiary companies working in the oil, gas, petrochemical, and energy-service sectors, including: ADCO, ADMA-OPCO, GASCO, ADGAS, ZADCO, TAKREER, NDC, ESNAAD, IRSHAD, FERTIL, BOROUGE, ADNATCO-NGSCO, ADNOC Distribution, Elixier and Al Hosn Gas.