ABU DHABI, 13th May, 2018 (WAM) -- Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO, has said that the UAE leadership's vision has continued Abu Dhabi’s half century legacy as a reliable, trusted, stable partner of choice to expand existing relationships and forge new strategic partnerships in the oil industry.
Dr. Al Jaber's remarks came during ADNOC’s Downstream Investment Forum which kicked off in Abu Dhabi today.
He went on to say that over the course of the Forum, "we will share our detailed smart growth strategy to fulfil the vision of our leadership by becoming a leading global downstream player. Fundamentally, our strategy will create a fully integrated downstream ecosystem capturing value at every step along the way from commodity to consumer."
Dr. Al Jaber said that ADNOC will double its crude refining capacity, triple its petrochemical production and alongside its partners invest US$45 billion to create the single largest integrated refining and petrochemicals destination in the world. "We will collaborate with partners to build on and expand our world class refining assets, increasing their capacity to at least 1.5 million barrels per day. We will also build one of the world’s largest mixed feed crackers, with a capacity of 1.8 million tons of Ethylene and an aromatics unit able to process over 1.6 million tons annually," he added.
Dr. Sultan Al Jaber's full statement is below:
Your Excellencies, Distinguished Guests, Ladies and Gentlemen it gives me great pleasure to welcome you to ADNOC’s Downstream Investment Forum.
Where, for the first time, we will host a strategic and detailed discussion about our plans to significantly transform and expand our Downstream portfolio.
Please allow me first to thank all of you for making the time to join us, for what is a milestone for ADNOC and, I believe, a day of great potential for ALL of us.
Sixty years ago, oil was first discovered off our shores launching an era that has changed the fate of Abu Dhabi and the United Arab Emirates. The rig that struck oil in 1958 - called the Enterprise - was an international collaboration brought together by the vision of the UAE’s leadership. It exemplified the spirit of partnership that has driven the UAE’s progress, creating long lasting, mutual economic benefits.
And as I look around this room today filled with guests from every corner of the world I recognise that this same spirit of partnership is what will drive the next phase of our industry’s development.
Ladies and Gentlemen, while hydrocarbons will remain essential for fueling the global economy for decades to come, the fundamentals of the energy landscape have shifted, and ended the era of "business as usual."
At ADNOC we have embraced these new realities by keeping an unwavering focus on efficiency and maximising the value of every barrel we produce.
We have driven down our production costs, increased our operational margins and enhanced our financial structure to ensure a smarter use of capital and assets.
Last year’s successful IPO of ADNOC Distribution underlines the commerciality we are applying to every corner of our business as we execute our 2030 strategy centered around a more profitable upstream, a more valuable downstream and a more sustainable, economic gas supply, all underpinned by more proactive and adaptive marketing and trading.
Ladies and Gentlemen, our upstream business will always remain a core part of our DNA, as we continue to be a reliable cost- competitive global supplier of crude.
At the same time, when we look at where new growth is coming from, we find that the sharpest growth is in the downstream, where demand for petrochemicals and polymers will more than double over the next 20 years.
Over two thirds of this new demand will come from markets East of Abu Dhabi. And today, we will lay out our strategy for capturing that growth opportunity and the role we can play together to benefit from this ambitious strategy.
Following the directives of our wise leadership, we will build and expand on the foundation that we have already established in the Ruwais industrial complex.
We will double our crude refining capacity, triple our petrochemical production and alongside our partners invest US$45 billion to create the single largest integrated refining and petrochemicals destination in the world.
We will leverage Abu Dhabi’s inherent cost and quality advantages, which include an abundant, locally sourced, unique, high grade feedstock; seamless on-site integration with a best-in-class, plug-and- play infrastructure, and our central position at the pivot point of global trade.
Above all, we will build on Abu Dhabi’s half century legacy as a reliable, trusted, stable partner of choice to expand existing relationships and forge new strategic partnerships.
We will look for partners willing to invest with us locally in order to grow together globally. Partners who bring strategic value add and access to smart capital. And Partners, who offer advantaged access to high growth markets.
Importantly we seek partners, who are able to bring the latest innovations and out-of-the-box thinking. And who understand that technology is not a separate industry, but a key enabler that cuts across all industries.
Over the course of this Forum, we will share our detailed smart growth strategy to fulfil the vision of our leadership by becoming a leading global downstream player.
Fundamentally, our strategy will create a fully integrated downstream ecosystem capturing value at every step along the way from commodity to consumer.
We will collaborate with partners to build on and expand our world class refining assets, increasing their capacity to at least 1.5 million barrels per day.
We will also build one of the world’s largest mixed feed crackers, with a capacity of 1.8 million tons of Ethylene and an aromatics unit able to process over 1.6 million tons annually.
This will give us the capability to produce at scale the full range of the essential base chemical building blocks.
On top of this, we will add a derivatives and conversion park to manufacture finished products on site, completing the final link in the petrochemical value chain and significantly contributing to the diversification of the UAE’s economy.
As we move forward, there will be multiple opportunities for partners and investors to participate in a variety of projects within this diverse and growing industrial complex.
The impact of these investments will be tangible and long-lasting.
They will generate attractive returns for ADNOC and its partners, and also critically produce sustainable in country value here at home contributing at least 15,000 direct and indirect new jobs by 2025 and one percent UAE GDP growth per year.
Ladies and Gentlemen, some are saying that the era of oil is drawing to a close.
The fact is nothing could be further from the truth.
As a matter of fact it is the absolute opposite.
Oil will not only remain vital for transportation, but will grow in importance as the essential building block for the products that define daily life.
Oil is automotive. Oil is agriculture. Oil is infrastructure. Oil is healthcare. Oil is semiconductors.
Everything from light weight composite car parts to high voltage insulation to nano-plastics for micro-chips the modern world is enabled and improved by the humble hydrocarbon molecule.
In the six decades since oil was discovered in the UAE, our leadership has insisted we use this resource wisely to sustain our development as a nation.
This progressive vision still guides us to this day as we continue our journey of discovery to maximize and extend the economic impact of our hydrocarbon reserves.
Let me invite all of you here to today, established partners and new friends alike to join us in pushing the boundaries of progress.
This is a time for the bold to step up, to back the best creative ideas and seize the opportunity to shape our common and successful future.