The Global News Source for the World of Science
01 January 2018Lab Chat
The Abu Dhabi National Oil Company (ADNOC) is the biggest company in the UAE. It’s the 12th largest oil producer in the world, with 3 million barrels per day. But it’s still looking to grow. This year, ADNOC announced the 2030 Strategy to transform their business and deliver growth. But will they be expanding in 2018? Read on as we look at the plans of the national oil producer.
It’s not unusual for ADNOC to talk about growth. They have a history of ambitious expansion. After turning up relatively late to the Middle East oil industry in 1962, the UAE government established the Abu Dhabi National Oil Company in 1971. From then, it was tasked with managing the UAE’s natural oil reserves – the seventh largest in the world.
Naturally, this has allowed for plenty of growth through the years, exploring and extracting the vast reserves and using them to produce all sorts of products. Unlike companies such as PetroChina, ADNOC has not been dragged down during periods of change. It has been restructured twice – in 1988 and 1998 – to ensure it could handle diversification and growth.
In the 2030 Strategy, ADNOC explained how they want to keep their “eye firmly on the future”. The first step in that seems to be next year, when they plan to expand their distribution into Dubai.
“Dubai is the only emirate that we don’t supply today,” said ADNOC Distribution CEO John Carey. “Our intention is to open two stations in 2018 and to grow our position beyond that in the next five years to get to having a strong position.”
It’s not just Dubai though. Further afield, the Abu Dhabi firm is looking to expand into Saudi Arabia. The country is going through something of a transformation, starting with November’s royal purge. It’s thought Saudi Arabia is ready to embrace other countries, with plans to build new industrial cities in the desert amongst their future developments.
“We see Saudi and the historic changes in Saudi as a potential opportunity for us in the future,” said Carey. “We will look at opening franchise, we are working with partners but we won’t heavily invest in Saudi in infrastructure.”
Despite plans for expansion in Dubai and Saudi Arabia, ADNOC is still focussed on their strength all over the UAE. That’s why they’re also broadening their horizons in terms of investments. Petrochemicals and refining are two areas highlighted for more investment in the ADNOC group. They will also continue to invest in technology for their fuel stations, such as the smart wallet and other ways to speed up payment at the pump.Download PDF