Investment boost of 45 Billion USD to be made by ADNOC
Abu Dhabi National Oil Company (ADNOC) has unveiled plans to invest $45bn over five years with other partners in order to expand its existing downstream industry. ADNOC looks forward to increasing the value of every oil barrel. The emirate looks forward to diversify their economic base by expanding its refining and petrochemicals industries. The capital of UAE has also mentioned that they are building the world’s largest integrated production facility in the town of Ruwais.
The expansion plans seek to leverage its location near growing markets and the country’s competitive advantage in energy. Thereby, making more money out of the various stages of oil production. The expansion plans by 2025 seek to boost refining capacity to over 600,000 barrels a day, that is crossing 65%. By investing in developing a new refinery, the emirate looks to bring capacity up to 1.5m barrels a day. The fields the companies will analyze through seismic, drilling and engineering studies include the Ghasha and Hail areas with a view to appraising and developing them.
Image: ADNOC HQ in Abu Dhabi.
Ruwais which is located roughly about 250 km west has been planned to include manufacturing units for higher-value products by inviting companies that are involved in chemicals and detergents, or packaging and automotive composites. To kick-start the project, ADNOC is ready to provide the necessary infrastructure and attractive rates that will help to significantly contribute to the diversification of the economy of UAE. Oil company giant Saudi Aramco has also started to make their own reform plans and is currently is looking at an IPO (initial public offering) to raise cash and kick-start a broader economic revival looking forward to boosting the private sector.
14.4 million tons of petrochemicals production a year has been planned through another new facility while ADNOC plans to make other overseas investments in order to secure an even greater market access. The petrochemicals derivatives complex will be built on a 6km² plot. Also, Ruwais Conversion Park will also be built to manufacture packaging materials, coatings, and automotive composites within the 3.6km² area allocated. The Abu Dhabi National Oil Company is in negotiations with global companies for investment partnership opportunities in Abu Dhabi. The capital of UAE has built its hydrocarbons industries in line with international business since the past few decades.
Image: ADNOC unveils Investment boost of 45 Billion USD
The 45 billion dollars downstream investment boost plans to add 1 percent of annual growth to GDP by hoping to create 15,000 jobs in the process. It is quite clear that the capital of the United Arab Emirates, Abu Dhabi, accelerating plans for economic diversification thereby preparing for a future beyond oil and away from hydrocarbons. This will cause a major boost to the economy in the coming decade as the capital of the UAE looks to strategically invest and grow their GDP. A wonderful initiative by the government and a sustainable outlook for the years to come. The expansion plan was unveiled at its Downstream Investment Forum 2018 on 13 May, by ADNOC.