The Abu Dhabi National Oil Company (ADNOC) unveiled plans to invest AED 165 billion (US $45 billion) alongside partners, over the next five years, on downstream oil market. The new strategy was unveiled at the ADNOC Downstream Investment Forum, which took place today in Abu Dhabi in the United Arab Emirates.
"At this time now that we shift gear and we start focusing on maximising value and stretching the dollar from every barrel we produce," the company's CEO Dr. Sultan Al Jaber told Euronews' Daleen Hassan.
As cleaner, cheaper energy alternatives become available, global concerns have shifted from having an eventual low supply of oil to actually having an oversupply. This has led oil prices to drop, creating significant instability in the market. So ADNOC's bold decision to expand its downstream sector and diversify its activities might come as a safety net, ensuring new ways to strengthen UAE's economy in the long run.
“We do believe that oil will continue to be essential, it will continue to be a critical factor in helping to grow our economies and it will continue to play its very important role as part of the energy mix. To us, it's simply a natural extension to our investments in oil and gas. We find this to be a logical step. We simply can and we should invest in downstream,” said Dr. Al Jaber.
By increasing its refining and petrochemical operations, the state-owned company aims to undertake highly targeted overseas investment and secure greater market access.
“ADNOC going downstream means capitalizing on our deep energy expertise and tapping into strategic partnerships and substantial financial resources as well as having access to technology and knowing where the market is actually going to grow,” he added.