Adnoc wants to rival oil majors as it expands in refining, gas

The Adnoc building in Abu Dhabi. The UAE-based oil company wants to expand its gas operations. (Shutterstock)
Updated 14 November 2018
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Adnoc wants to rival oil majors as it expands in refining, gas

  • Adnoc announced two gas deals with France’s Total and Italy’s Eni this week
  • Adnoc aims to reach 1 billion cubic feet per day of unconventional gas production before 2030

ABU DHABI: Abu Dhabi National Oil Co. (Adnoc) will remain wholly owned by the Abu Dhabi government and has no plan to go public, but the firm aspires to compete with Big Oil by expanding in refining and gas, Adnoc’s CEO told Reuters.
Adnoc, which announced two gas deals with France’s Total and Italy’s Eni this week, will strike more agreements in that sector and seek investment opportunities abroad in liquefied natural gas (LNG), Sultan Al-Jaber said.
“Adnoc will continue to be wholly owned by one and only one shareholder, and that is the Abu Dhabi government,” Al-Jaber said.
But the company will continue to “unlock the potential” of its other subsidiaries and assets as it works to gain access to new markets abroad and expand its share in oil and gas, he said.
“There will be more initiative (gas) plans,” Al-Jaber said in an interview in Abu Dhabi. “We are not going to expand beyond our borders in upstream. We don’t need to. We have access to vast, vast oil and gas reserves,” he said.
“Our expansion ... is going to be in downstream, whether refining or petrochemicals,” he added.
On Sunday, Adnoc said it had signed an agreement with Total, granting the French company a 40 percent stake in the Ruwais Diyab unconventional gas concession.

 

Adnoc aims to reach 1 billion cubic feet per day of unconventional gas production before 2030.
“This is untapped. No one is doing this at this scale in this region,” he said of the tight gas project with Total.
On Tuesday Adnoc signed a deal with Eni, awarding the Italian company a 25 percent stake in an offshore ultra-sour gas project.
A day earlier the Abu Dhabi producer also signed a framework agreement with national energy company Saudi Aramco to explore investment opportunities in natural gas and LNG.
As the diplomatic alliance between Riyadh and Abu Dhabi grows closer, cooperation between the two state-run firms is also increasing. The two companies are to invest jointly in an oil refinery and petrochemicals complex in India.
Aramco and Adnoc working together is “a powerhouse,” Al-Jaber said. “We are going to be soon looking and exploring LNG business opportunities together with Aramco,” he said.
Adnoc, the top national energy company of the UAE, a key member of OPEC, produces about 3 million barrels of oil and 10.5 billion cubic feet of raw gas a day.
Last week, it announced plans to increase its oil production capacity to 4 million barrels per day (bpd) by the end of 2020 and 5 million bpd by 2030 after unveiling new oil and gas finds.
The UAE wants to achieve gas self-sufficiency and possibly become a net gas exporter.
The UAE holds the seventh-largest proven reserves of natural gas in the world, at slightly more than 215 trillion cubic feet, according to the US Department of Energy.
Despite that, the UAE became a net gas importer in 2008 due to growing demand for power and as it needed gas to reinject into its oilfields to enhance crude production. The UAE has been importing gas from Qatar via the Dolphin Gas pipeline.
Adnoc, founded in 1971, has undergone major change since Al-Jaber’s appointment in 2016, part of wider economic reforms led by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan.
Al-Jaber has embarked on privatizing its services businesses, ventured into oil trading and expanded partnerships with strategic investors. Adnoc sold
10 percent of fuel retail unit Adnoc Distribution in an initial public offering last year.
Adnoc needs to accept that business as usual will no longer allow the company to excel, Al-Jaber said.
“We want Adnoc ... to operate like an international oil company,” he said. “This is how I view a progressive Adnoc.”

FASTFACTS

40% – On Sunday, Adnoc said that it had signed an agreement with Total, granting the French company a 40 percent stake in the Ruwais Diyab unconventional gas concession.


Apple China says it will push software update in bid to resolve Qualcomm case

Updated 14 December 2018
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Apple China says it will push software update in bid to resolve Qualcomm case

  • Apple will carry out the software updates at the start of next week to address the concern
  • A court found Apple infringed two patents held by the chipmaker and banned sales of older iPhone models

SHANGHAI/SAN FRANCISCO: Apple Inc. , facing a court ban in China on some of its iPhone models over alleged infringement of Qualcomm Inc. patents, said on Friday it will push software updates to users in a bid to resolve potential issues.
Apple will carry out the software updates at the start of next week “to address any possible concern about our compliance with the order,” the firm said in a statement sent to Reuters.
Earlier this week, Qualcomm said a Chinese court had ordered a ban on sales of some older Apple iPhone models for violating two of its patents, though intellectual property lawyers said the ban would still likely take time to enforce.
“Based on the iPhone models we offer today in China, we believe we are in compliance,” Apple said.
“Early next week we will deliver a software update for iPhone users in China addressing the minor functionality of the two patents at issue in the case.”
The case, brought by Qualcomm, is part of a global patent dispute between the two US companies that includes dozens of lawsuits. It creates uncertainty over Apple’s business in one of its biggest markets at a time when concerns over waning demand for new iPhones are battering its shares.
Qualcomm has said that the Fuzhou Intermediate People’s Court in China found Apple infringed two patents held by the chipmaker and ordered an immediate ban on sales of older iPhone models, from the 6S through the X.
Apple has said that all of its phone models remained on sale in mainland China and that it had filed a request for reconsideration with the court. All the models appeared to be available to buy on Apple’s China website on Friday.
Qualcomm, the biggest supplier of chips for mobile phones, filed its case in China in late 2017, arguing that Apple infringed patents on features related to resizing photographs and managing apps on a touch screen.