MOSCOW (MRC) -- Abu Dhabi National Oil Co (ADNOC) will remain wholly owned by the Abu Dhabi government and has no plan to go public, but the firm aspires to compete with Big Oil by expanding in refining and gas, ADNOC’s CEO told Reuters.
ADNOC, which announced two gas deals with France’s Total and Italy’s Eni this week, will strike more agreements in that sector and seek investment opportunities abroad in liquefied natural gas (LNG), Sultan al-Jaber said.
"ADNOC will continue to be wholly owned by one and only one shareholder, and that is the Abu Dhabi government," al-Jaber said.
But the company will continue to "unlock the potential" of its other subsidiaries and assets as it works to gain access to new markets abroad and expand its share in oil and gas, he said.
"There will be more initiative (gas) plans," al-Jaber said in an interview in Abu Dhabi. "We are not going to expand beyond our borders in upstream. We don’t need to. We have access to vast, vast oil and gas reserves," he said.
"Our expansion is going to be in downstream, whether refining or petrochemicals," he added.On Sunday, ADNOC said it had signed an agreement with Total granting the French company a 40 percent stake in the Ruwais Diyab unconventional gas concession.
ADNOC aims to reach 1 billion cubic feet per day of unconventional gas production before 2030.
"This is untapped. No one is doing this at this scale in this region," he said of the tight-gas project with Total.
On Tuesday ADNOC signed a deal with Eni, awarding the Italian company a 25 percent stake in an offshore ultra-sour gas project.
A day earlier the Abu Dhabi producer also signed a framework agreement with national energy company Saudi Aramco to explore investment opportunities in natural gas and LNG.
As MRC wrote previously, a USD3.1 billion project to introduce crude processing flexibility, at the Abu Dhabi National Oil Company (ADNOC) owned Ruwais oil refinery, was announced in February, 2018. Known as the Crude Flexibility Project (CFP), the announcement was another significant step forward as ADNOC accelerates delivery of its Downstream refining strategy that aims to enhance margins by introducing asset flexibility, backed by strong crude and product marketing initiatives.