ADNOC to promote shale oil and gas projects following UAE's OPEC withdrawal

ADNOC Abu 'Dhabi expects to reach a final investment decision on its unconventional gas with TotalEnergies 'this year, and approval of a separate unconventional petroleum project is expected to follow shortly, said its upstream chief.

Musabbeh Al-Kaabi, the Upstream CEO of state oil giant ADNOC, said that the United Arab Emirates' exit from OPEC on May 1 was a "sovereign" decision made in the 'long-term economic and strategic interests' of the country.

Kaabi, who spoke at the "Make it in the Emirates" conference, said that ADNOC has been piloting its unconventional projects for more than a year, using advanced drilling techniques similar in style to those used in the U.S. Shale industry. This was done to reduce risks and assess decline rates.

Petronas, EOG Resources and Petronas are partners in the oil project.

WAR IMPACTS EXTRACT

ADNOC wants to increase its oil production capacity to 5 million barrels a day (bpd). This is aimed at next year. UAE Energy Minister Suhail al-Mazrouei stated that last year, the capacity could have been increased to 6 million barrels per day (bpd) if?markets required it.

Kaabi refused to comment on the plans that go beyond the 5,000,000 bpd target by 2027.

He said that by operating outside OPEC quota'system, the UAE can meet the growing global demand - while delivering the "lowest cost production and more importantly, the lowest carbon intensity barrels".

The Iran war is continuing to impact regional energy operations, putting this flexibility to the test.

Kaabi?declined? to provide current production figures. However, secondary OPEC source show that UAE production dropped from over 3.4 million bpd?in February to a little under 1.9million bpd?in March.

Kaabi added that ADNOC tries to meet supply commitments as much as possible during "exceptional periods."

(source: Reuters)