Hazza bin Zayed: ADNOC’s new initiatives boost UAE economy

ABU DHABI / WAM

The new initiatives launched by ADNOC as part of its flexible operational model will bring significant benefits to the UAE and boost the country’s domestic economy, adding to its resilience and diversity towards achieving more supremacy and competitiveness at the regional and global levels, HH Sheikh Hazza bin Zayed Al Nahyan, Deputy Chairman of Abu Dhabi Executive Council, has stated.
Commenting on ADNOC’s launch of new expansion initiatives, HH Sheikh Hazza added that the new plans will accelerate the delivery of ADNOC Group’s 2030 strategy, namely, a more profitable upstream business, a more valuable downstream business, and an economic and sustainable supply of gas for Abu Dhabi.
ADNOC is an integral part of the UAE national economy which consistently proves its capability to forge ahead and keep pace with technological advancements in order to maintain its pioneering stature, HH Sheikh Hazza noted. The Abu Dhabi National Oil Company, ADNOC, had announced expansion of its partnership model to span the group’s entire value chain as well as the more active management of its portfolio of assets.
The new initiative builds on ADNOC’s flexible operating model and its 2030 growth strategy, enabling it to unlock and maximise significant value from across the group, drive business and revenue growth, optimise performance, and secure greater access for its products in key growth markets.
The new initiative is an integral part of the ongoing transformation of ADNOC and will accelerate the delivery of ADNOC Group’s 2030 strategy, namely, a more profitable upstream business, a more valuable downstream business, and an economic and sustainable supply of gas for Abu Dhabi.
Central to ADNOC’s new approach will be the more active management of its portfolio of assets and businesses. ADNOC is also considering the IPO of minority stakes of some of its services businesses which have attractive investment and growth profiles. Such IPOs would support the growth and expansion of the UAE’s private sector and equity capital markets and will allow the public and other investors to invest alongside ADNOC and benefit from the future growth of these assets. ADNOC will continue to be a committed, long-term majority shareholder in any businesses that are listed.
Importantly, there will be no IPO of ADNOC, the group holding company. ADNOC will remain fully owned by the Government of Abu Dhabi. ADNOC’s expanded approach to partnerships complements its open operating model, capitalises on key trends in the energy industry and leverages ADNOC’s robust financial strength and 45-year legacy of successful energy partnerships.
ADNOC has developed a clear set of criteria by which it will select new partners, including the ability of partners to secure better access to the world’s fastest growing target markets for ADNOC’s products, the willingness to contribute technical expertise and co-develop new technologies alongside ADNOC’s own capabilities, and the potential to co-invest strategically across different parts of a more integrated ADNOC value chain.
ADNOC will in turn offer innovative, attractive and stable investment opportunities that will bring select investor access to ADNOC’s world-class asset base that is both logistically and strategically advantaged and located in an investor friendly environment.
ADNOC will also look to broaden both the range and type of partners it works with, to include, for example, specialist infrastructure and energy investors, long term global investment institutions and other energy, services and petrochemical players, while also deepening its engagement with existing partners.
The new initiative will bring significant benefits to the UAE and its citizens. Most importantly, it will create new, high-skilled jobs and attractive career opportunities across all parts of the ADNOC value chain.