Adnoc's $150bn five-year spend is 'big commitment' to support UAE gas ambitions

UAE state energy company Adnoc's plan for $150 billion in capital expenditure over the next five years is a “big commitment” and its focus on gas is a safe play for the short and long term, say analysts.

Adnoc on Monday said its board has approved the capex for the 2026-2030 period to maintain growth and operational processes.

The company's plan to invest about $30 billion per year “is huge and is in line with the world's energy giants like Saudi Aramco that typically invests $25 –$30 billion annually, or ExxonMobil and Shell that would invest about $20 –$25 billion per year in total capex, though split between oil, gas and low-carbon ventures”, said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.

President Sheikh Mohamed with Adnoc employees after a board of directors meeting at the Habshan Complex. With him was Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and managing director and group chief executive of Adnoc. All photos: UAE Presidential Court Sheikh Mohamed with Adnoc workers at Habshan Complex Sheikh Mohamed listens to a presentation before the Adnoc board of directors meeting Sheikh Mohamed with Adnoc employees Sheikh Mohamed chairs the Adnoc board of directors meeting Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, speaks with Suhail Al Mazrouei, Minister of Energy and Infrastructure Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, at the board of directors meeting The Adnoc logo and UAE flags at the Habshan Complex

Adnoc said the UAE’s conventional reserves base has increased from 113 billion stock tank barrels (stb) of oil to 120 billion stb and from 290 trillion standard cubic feet (tscf) of natural gas to 297 tscf. The UAE has the world’s sixth-largest oil reserves and the seventh-largest gas reserves.

The company's board, which held its annual meeting at the Habshan gas processing facility, also approved the establishment of Adnoc Ghasha, a new operating company for the Ghasha concession which includes the Hail, Ghasha, Dalma, SARB and Nasr fields.

The concession is set to produce 1.8 billion scf of gas and 150,000 barrels per day of oil and condensates. Construction of the Hail and Ghasha project is progressing at pace, Wam reported.

Ms Ozkardeskaya said Adnoc's $150 billion investment is a “big, big commitment and very much in line with global energy trends”.

“Gas is seen as a transition fuel that could help