The state-owned oil company of the United Arab Emirates (UAE) is looking to engage with US shale operators to help it develop its unconventional oil resources, according to a report from Reuters quoting Sultan Ahmed Al Jaber, who is the CEO of the Abu Dhabi National Oil Company (ADNOC).
The country currently has an estimated 107 billion barrels of recoverable oil reserves, after the Supreme Petroleum Council announced a further two billion barrels in discoveries. The council has also said its unconventional oil reserves currently stand at about 22 billion barrels so far. It believes that if these are suitably developed, the results could rival the shale boom that has taken place in the US over recent years.
According to the report, when the discoveries were announced, Al Jaber said:
“Today’s announcement by the SPC of the discovery of recoverable unconventional oil resources demonstrates how ADNOC is efficiently expediting the exploration and development of Abu Dhabi’s unconventional resources and marks a major milestone as the nation’s unconventional industry evolves.”
Last December, ADNOC entered into an agreement with ExxonMobil, the US oil major that makes the Mobil range of industrial lubricant and grease products. The agreement builds upon a long-standing partnership, and under it, they will identify ways in which to share innovative best practices and advanced technology to deliver benefits throughout the supply chain.
The UAE is looking to increase its crude oil production once the OPEC+ cuts are relaxed, and tapping into the fracking expertise of operators like ExxonMobil may be a way to achieve this.