The United Arab Emirates is planning to maximise its revenue from crude oil by increasing its production capacity at a faster rate than was previously announced, according to Bloomberg sources acquainted with the matter.
The state-owned Abu Dhabi National Oil Company (ADNOC) produces almost all the oil in the UAE, although energy majors like BP, the maker of Castrol lubricant and grease products, have invested in some joint ventures. ADNOC had previously announced it would increase its crude oil production capacity to five million barrels per day (bpd) by 2030, but it has reportedly now moved this forward to 2025 after initially considering setting a new target of 2027.
In a response to Bloomberg, ADNOC declined to confirm or deny whether the 2030 target had been moved forward, saying:
“As we embrace the energy transition and future-proof our business, we will continue to explore potential opportunities that can further unlock value, free up capital and enhance returns.”
The expansion project was already estimated to cost billions of dollars, and it may be set to cost even more now given the extremely ambitious timeline for it. Nevertheless, the earlier date will allow it to make more from its crude oil while prices remain high and get it to market before the world transitions wholesale to renewable energies.
If ADNOC successfully achieves a capacity of five million bpd by 2025, the sources said the company may go further by trying to reach a capacity of six million bpd by 2030.