UAE’s ADNOC boosts budget allocation for lower-carbon projects to $23 bln

The state-owned Abu Dhabi National Oil Company said on Mon-day it would allocate $23 billion for decarbonization and lower-carbon projects, up from a previous $15 billion target.

ADNOC made the announcement at its annual board meeting which was chaired by United Arab Emirates President Sheikh Mohammed bin Zayed Al Nahyan.

“The increased allocation will include investments to grow the company’s domestic and international carbon management plat-forms,” ADNOC said in a statement.

Sheikh Mohammed “directed ADNOC to grow its diversified portfolio and provide secure, reliable, and responsible energy to support the delivery of a just, orderly and equitable global energy transition,” the statement said.

ADNOC has said it aims to reduce its carbon intensity by 25 percent by 2030 and to reach net zero carbon emissions by 2045.

In late 2022, ADNOC at its board meeting approved a five-year business plan and capital expenditure of $150 billion (550 billion dirhams) for 2023-2027. It also brought forward its target of five million barrels per day oil production capacity expansion to 2027 from 2030.

ADNOC on Monday said its “In-Country Value” program had driven $11.2 billion into the UAE’s economy in 2023, and the
board endorsed a goal for the program to generate $48.5 billion over the next five years. ADNOC created 6,500 jobs for
Emirati citizens in the private sector in 2023 through the program, it said.

The program has brought $51 billion in value to the UAE economy since 2018 and created 11,500 jobs for Emiratis in the private sector, ADNOC said.

ADNOC said since 2022 it has signed local manufacturing deals worth $16.9 billion with local and international companies. ADNOC has a target to locally manufacture $19 billion worth of products it plans to procure by 2027.