UAE’s ADNOC Expands Global Presence and Pursues Diversification Opportunities
The United Arab Emirates (UAE) is making significant strides in transforming its state-owned Abu Dhabi National Oil Company (ADNOC) into an international oil major. With a focus on maximizing earnings and diversifying the economy, the UAE aims to capitalize on its fossil fuel resources while exploring new revenue streams.
ADNOC is actively pursuing opportunities in renewable energy, gas, petrochemicals, and liquefied natural gas (LNG), signaling its commitment to sustainable and cleaner energy sources. The company is reportedly eyeing LNG assets in Africa and considering the acquisition of Galp’s 10% stake in a multi-billion-dollar natural gas project off the coast of Mozambique.
In recent years, ADNOC has been engaged in various deals to expand its global presence. It has acquired a stake in an Azerbaijani gas field, expressed interest in a stake in Israeli gas producer NewMed Energy, initiated takeover talks with German plastics maker Covestro, and is working towards creating a $20 billion chemicals giant with Austria’s OMV. Additionally, ADNOC has ventured into energy trading, with plans to strengthen its capabilities in this area.
To support its transformation, ADNOC has been actively recruiting talent from global energy firms, trading houses, banks, and consultancies. The company has hired more than 3,370 staff, including 28 senior managers, this year alone. With a 13% increase in headcount in 2021 and a quarter increase over the past two years, ADNOC’s workforce now exceeds 40,000 employees.
While ADNOC’s transformation mirrors similar changes in Saudi Arabia and Qatar’s state-owned energy companies, analysts note that government control will always play a role in shaping their strategies. However, ADNOC’s commitment to investing $15 billion in climate-friendly projects by 2027 and its aim to install 100 gigawatts of renewable energy by 2030 demonstrate its efforts to align with global sustainability goals.
As ADNOC continues to evolve, it seeks to position itself as an international oil company (IOC) rather than a traditional state oil firm. By diversifying its operations, expanding globally, and embracing cleaner energy sources, ADNOC aims to secure its future and contribute to the UAE’s economic transition.