Abu Dhabi National Oil Company

The Abu Dhabi National Oil Company (Arabic: شركة بترول أبوظبي الوطنية‎) or ADNOC is the state-owned oil company of the United Arab Emirates (UAE). According to the Oil & Gas Journal, as of January 2015, the UAE holds the seventh-largest proven reserves of oil in the world at 97.8 billion barrels. Most of these reserves are located in Abu Dhabi.[2] It is the world's 12th largest oil company by production, producing 3.1 million barrels per day.[3] It is the UAE's largest company.[4]

Abu Dhabi National Oil Company
(ADNOC)
Native name
شركة بترول أبوظبي الوطنية
Government owned corporation
IndustryOil and gas
Founded1971 (restructured in 1988)
FounderZayed bin Sultan Al Nahyan 
Headquarters
Abu Dhabi
,
United Arab Emirates
Key people
Khalifa bin Zayed Al Nahyan (Chairman of the Supreme Petroleum Council)
Sultan Ahmed Al Jaber (Director-General and CEO)
ProductsCrude oil
Oil products
Natural gas
Petrochemicals
RevenueUS$60 billion (2014)
Number of employees
55,000 (2015)[1]
Websitewww.adnoc.ae

Operations

ADNOC is one of the world's largest energy companies measured by both reserves and production. ADNOC has 16 subsidiary companies in upstream, midstream, and downstream stages of production.[5] ADNOC develops both onshore and offshore gas fields. The company operates two oil refineries, Ruwais and Umm Al Nar. ADNOC exports natural gas in the form of liquefied natural gas (LNG) in addition to producing supplies for local electricity and water utilities, to other domestic industries including petrochemicals plants, and for re-injection into reservoirs.[6]

Headquarters

ADNOC Headquarters is a skyscraper office complex located in Abu Dhabi.[7] The building incorporates energy efficiency and sustainable engineering technologies, such as a double skin façade, photovoltaic glazing, LED exterior lighting. Designed by HOK, the overall building complex consists of more than 65 floors with an office tower, corniche club, crisis management center, a heritage museum, and other support facilities.[8]

Leadership and corporate governance
Dr. Sultan Ahmed Al Jaber, director general and CEO of ADNOC Group.

Sultan Ahmed Al Jaber
Main article: Sultan Ahmed Al Jaber

Sultan Ahmed Al Jaber is Minister of State in the United Arab Emirates, the Director-General and CEO of the Abu Dhabi National Oil Company, the chairman of Masdar, a company located in Abu Dhabi specializing in clean technology, renewable energy, and sustainable development and the chairman of Abu Dhabi Ports. He serves as the UAE's special envoy for energy and climate change.

In 2013, Dr. Al Jaber was named Minister of State and joined the UAE cabinet. Dr. Al Jaber's appointment was approved by Sheikh Khalifa bin Zayed Al Nahyan, the UAE's president. Speaking of the appointment of Dr. Al Jaber and other ministers, Sheikh Mohammed bin Rashid Al Maktoum, the UAE's vice president and prime minister and ruler of Dubai, said the new cabinet has "young faces with new ideas and energy to keep up with the rapid changes and to deal with our people's top priorities."[9]

Al Jaber holds a BSc in Chemical Engineering from the University of Southern California the United States and a PhD in business and economics from Coventry University in the United Kingdom and an MBA from the California State University at Los Angeles.[10]

After his appointment, Al Jaber, revealed a plan to modernize ADNOC and make its operations more profitable. The plan includes streamlining ADNOC's operations to improve profitability and working to create a more commercially minded culture among the firm's employees; the goal is to put the quality of ADNOC's operations on equal footing with large multinationals while ensuring that the firm continues to help the UAE diversify its economy. As part of this effort, a master plan is being implemented to better coordinate upstream and downstream gas operations among ADNOC's many subsidiaries in order to more effectively meet the UAE's rising demand for natural gas. Maximizing profitability in upstream operations is another key priority. Under this plan ADNOC is also looking for ways to better coordinate downstream activity and create new products. Executive compensation has now been tied to key performance indicators and commercial benchmarks, especially operating cost per barrel. Al Jaber's plan will be implemented over several years. It is a part of the government's plan for economic diversification embodied in Economic Vision 2030.[11]

Supreme Petroleum Council
Main article: Supreme Petroleum Council

The Supreme Petroleum Council is the highest governing body of oil, gas, and similar industry related activities in the Abu Dhabi. The council was formed in 1988. The council is tasked with supervising all oil and gas companies that operate in Abu Dhabi and the United Arab Emirates and acts as the board of directors for ADNOC.[12]

Subsidiaries

As a fully integrated oil and gas company, ADNOC operations fulfill every aspect of process in the petroleum industry. These process are then divided among multiple subsidiaries.[13][14]

Exploration and production of oil and gas

ADNOC Onshore

ADNOC Onshore works onshore and in shallow coastal water. It is previously known as Abu Dhabi Company for Onshore Petroleum Operations, ADCO. ADNOC Onshore operates primarily in Abu Dhabi. The company was originally known as Petroleum Development (Trucial Coast). It received its first concession on January 11, 1939 but did not begin geological operations until after World War II. The first commercially viable oil discovery was made at Bab in 1960. In 1962, the company was renamed the Abu Dhabi Petroleum Company. Exports began to flow from the Jebel Dhanna terminal on December 14, 1963. Abu Dhabi's government acquired 25% equity in the company in 1973 and increased its stake to 60% in 1974. The company started using the name Abu Dhabi Company for Onshore Petroleum Operations, ADCO, in 1978. ADNOC Onshore's primarily exports from the Jebel Dhanna and Fujairah terminals. ADNOC have a 60% share, the remaining 40% is split (CNPC (8%), BP,(10%), Total (10%), Inpex (5%), CEFC (4%) and GS Energy of South Korea (3%)). The CEFC share may become a part of the Chinese state with the arrest of the CEFC CEO in March 2018.[15][16]

ADNOC Offshore

ADNOC Offshore is the largest offshore oil producer in Abu Dhabi. It is ADNOC's dedicated offshore arm and are responsible for the development and delivery of oil and gas resources in Abu Dhabi waters. It was formed through the consolidation of two of ADNOC's upstream oil and gas companies: Abu Dhabi Marine Area Operating Company (ADMA-OPCO) and Zakum Development Company (ZADCO). With reorganisation, and the expiry of the 65 year old ADMA concessions, the offshore concessions are now split by fields. ADNOC 60% then the 40% is split into Upper Zakum (Exxon / INPEX), (minor fields Umm Al Dalk, Satah (Inpex 40%)), Lower Zakum (Total, ENI, ONGC, INPEX), Umm Shaif and Nasr (Total, ENI), Sarb and Umm Lulu (CEPSA 40%).

ADNOC Drilling

The ADNOC Drilling is the ADNOC's oldest subsidiary. It is previously known as National Drilling Company, NDC. ADNOC Drilling is the largest drilling company in the Middle East. It drills for oil both onshore and offshore in Abu Dhabi. ADNOC has 100% equity in the ADNOC Drilling.[16][17]

Al Yasat Petroleum

Al Yasat Petroleum is ADNOC's youngest operating company. It is the first joint venture between ADNOC and China National Petroleum Corporation (CNPC), established in 2014. Tayba Al Hashemi is the current CEO of Al Yasat Petroleum. Al Yasat's role is to explore oil and gas potential within the company's mandated concession areas, and to develop prospective locations on behalf of the company's shareholders. ADNOC is the majority shareholder and owns 60% of the company, with CNPC owning the remaining 40%.[18]

Al Dhafra Petroleum

Al Dhafra Petroleum is an emerging upstream company that is focused on unlocking undeveloped oil and gas potential in the UAE. Al Dhafra Petroleum is a dynamic and efficient upstream company with a mandate to maximize the UAE's natural resources. Its shareholders are ADNOC, which owns 60% of the company, with Korea National Oil Corporation (KNOC) and GS Energy owning the remaining 40%.[19]

Processing and refining

ADNOC Gas Processing

ADNOC Gas Processing is a natural gas producer. It is formerly known as Abu Dhabi Gas Industries Limited (GASCO).[20] ADNOC owns 68 percent equity in ADNOC Gas Processing. Other shareholders are Shell Abu Dhabi with 15 percent equity, Total also with 15 percent, and Partex with 2 percent.[21] The company was established in 1975.[22][14]

ADNOC Sour Gas

ADNOC Sour Gas is a joint $10 billion venture between ADNOC and Occidental Petroleum that is expected to extract at least one billion cubic feet of ultra-sour gas per day. On a daily basis the project is also expected to produce 504 million cubic feet of natural gas, 33,000 barrels of condensates, and thousands of tons of natural gas liquids, and thousands of tons of sulphur granules. The Project is located in the Shah gas field about 210 kilometers west of Abu Dhabi. Half of this field's production will be used to service domestic demand in the UAE and minimize the need for gas imports. ADNOC Sour Gas is 60% owned by ADNOC with the remaining equity held by Occidental.[23][14] It is previously known as Abu Dhabi Gas Development Company Limited (Al Hosn Gas).[24]

ADNOC LNG

ADNOC LNG processes and distributes liquefied petroleum gas and liquified natural gas. ADNOC Gas Processing supplies product to ADNOC LNG at Das Island where it is processed and loaded on ships for export to East Asia, especially Japan. ADNOC is the majority shareholder. Minority shares are held by Mitsui, BP, and Total.[16] It is formerly called Abu Dhabi Gas Liquefaction Co. Limited (ADGAS).[25]

ADNOC Refining

ADNOC Refining was created in 1999 to takeover oil refining from ADNOC. ADNOC Refining refines crude oil and condensate, various petroleum products, and granulated sulphur.[26] It operates the Ruwais and Abu Dhabi refineries.[27] In 2015, it completed a major expansion of its Ruwais Refinery. The $10 billion project doubled the capacity of the facility. A large part of the increased output is dedicated to diesel production due to demand from Asia. Ruwais has the ability to refine 600,000 tonnes of high-quality base oils per year. These oils are used primarily for automative lubricants.[28] It is previously known as Abu Dhabi Oil Refining Company (TAKREER).

ADNOC Fertilizers

ADNOC Fertilizers was established in 1980. It manufactures urea and ammonia at its plant in Ruwais.[29][14] Most products are exported to India. ADNOC Fertilizers is a joint venture with Total. ADNOC retains majority control.[16] It is formerly called Ruwais Fertilizer Industries (FERTIL).[30]

ADNOC Industrial Gas

ADNOC Industrial Gas was founded in 2007. It manufactures industrial gas used in the oil, gas, and petrochemical industries. ADNOC Industrial Gas works very closely with ADNOC Gas Processing. The firm is a joint-venture between ADNOC and the Linde Group of Germany. ADNOC holds 51% equity with the remainder held by Linde.[16] It is formerly known as ADNOC Linde Industrial Gases Company Limited (ELIXIER).[31]

Abu Dhabi Polymers Company (Borouge)
Main article: Borouge

Borouge is a manufacturer of polyolefins. It is a joint venture of ADNOC and Borealis of Austria. It was founded in 1998, and has two divisions, one based in Abu Dhabi and another based in Singapore. The company supplies polyolefin plastics (polyethylene and polypropylene). They focus on differentiated high-end applications in the Middle East and Asia Pacific with Borstar Enhanced Polyethylene produced in Abu Dhabi and the Borealis range of speciality products.[32][14]

Marketing and distribution

ADNOC Logistics & Services

ADNOC Logistics & Services is formed by merging ESNAAD, IRSHAD, and ADNATCO.[33][34][35] ADNOC Logistics & Services is 100% owned by ADNOC.[36] The new company has a workforce of about 4,000 people.[37]

Abu Dhabi Crude Oil Pipeline LLC (ADCOP)

ADCOP owns an approximately 406 km pipeline that carries crude oil from an ADNOC Onshore collection center in Abu Dhabi to the Fujairah oil export terminal, which provides access to international shipping routes.[38]

ADNOC Distribution

ADNOC Distribution operates hundreds of service stations across the UAE, provides bunkering services at Mina Zayed port, aviation fuel services at most of the country's airports, and sells its own brand of lubricants throughout the Gulf region.[16]

Education

ADNOC Technical Academy (ATA)

The ADNOC Technical Academy (ATA) provides specialist training and education for UAE Nationals who want to become skilled oil and gas industry technicians.[39]

ADNOC schools

ADNOC schools teach Emirati and expatriate students, following a rigorous curriculum based on the highest academic standards, and prepares them for admission to the world's leading universities.[40]

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See also

References
  1. "Abu Dhabi's ADNOC cutting 5,000 jobs - MEED".
  2. Oil & Gas Journal, Worldwide Look at Reserves and Production, January 1, 2015
  3. FORBES The World's 25 Biggest Oil Companies
  4. "UAE Approves ADNOC Plan to Raise Oil Output to 3.5M BPD by 2018".
  5. "Adnoc puts almost all of its subsidiaries under single unified brand". The National. Retrieved January 21, 2018.
  6. usaspending.gov (2008). = 2008 "Federal Contracts to ABU DHABI" Check |url= value (help). Retrieved June 8, 2008.
  7. "ADNOC Headquarters". The Skyscraper Center. Council on Tall Buildings and Urban Habitat. Retrieved March 31, 2013.
  8. "Double Facade Study - Thesis" (PDF). Retrieved November 3, 2015.
  10. "Members Of The Cabinet". www.uaecabinet.ae. Retrieved January 19, 2016.
  11. "Adnoc to streamline operations across all activities, Sultan al Jaber says".
  12. "Abu Dhabi National Oil Company (ADNOC) - The Supreme Petroleum Council (SPC)". Archived from the original on February 27, 2010. Retrieved June 28, 2010.
  13. "ADNOC and its Group of Companies" (PDF). Archived from the original (PDF) on October 2, 2011., ADNOC website.
  14. "ADNOC plans $25 billion offshore spend". April 28, 2015.
  15. "ADNOC Onshore Notification - Abu Dhabi National Oil Company".
  16. The Oil & Gas Year Abu Dhabi 2010. ISBN 9781906975180.
  17. "ADNOC Drilling". www.adnoc.ae. Retrieved January 18, 2018.
  18. "About Al Yasat Petroleum". www.adnoc.ae. Retrieved January 20, 2018.
  19. "About Al Dhafra Petroleum". www.adnoc.ae. Retrieved January 20, 2018.
  20. "ADNOC Gas Processing Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  21. The Report: Abu Dhabi 2007. Oxford Business Group. 2007. p. 151. ISBN 9781902339719.
  22. The Oil & Gas Year Abu Dhabi 2010. Wildcat Publishing. 2011. p. 62. ISBN 9781906975180.
  23. "ADNOC opens $10bn al Hosn Shah sour gas development project in Abu Dhabi". April 26, 2016.
  24. "ADNOC Sour Gas Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  25. "ADNOC LNG Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  26. "ADNOC Refining Notification - Abu Dhabi National Oil Company".
  27. "About ADNOC Refining". www.adnoc.ae. Retrieved January 18, 2018.
  28. "Abu Dhabi refiner Takreer diversifies products to meet demand from transport sector".
  29. "ADNOC Fertilizers Notification - Abu Dhabi National Oil Company".
  30. "ADNOC Fertilizers Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  31. "ADNOC Industrial Gas Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  32. Borouge website: Locations, visited August 5, 2016
  33. "ADNOC Logistics and Services Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  34. "ADNOC Logistics and Services Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  35. "ADNOC Logistics and Services Notification - Abu Dhabi National Oil Company". adnoc.ae. Retrieved January 18, 2018.
  36. "About ADNOC Logistics & Services". www.adnoc.ae. Retrieved January 18, 2018.
  38. "Abu Dhabi Crude Oil Pipeline LLC (ADCOP)". adnoc.ae. Retrieved April 22, 2018.
  39. "ADNOC Technical Institute". adnoc.ae. Retrieved April 22, 2018.
  40. "ADNOC Schools". adnoc.ae. Retrieved April 22, 2018.
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