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Abu Dhabi's Gas Decision: Unconventional Projects Moving Ahead
5 May
Summary
- ADNOC anticipates a final investment decision on its unconventional gas project soon.
- UAE's departure from OPEC was a strategic sovereign decision for economic interests.
- Unconventional oil project approval is also expected to be finalized shortly.
Abu Dhabi's national oil company, ADNOC, is nearing a critical juncture for its unconventional energy projects. A final investment decision on a significant unconventional gas project, undertaken in partnership with TotalEnergies, is anticipated within the current year. Concurrently, approval for a separate unconventional oil project, involving partners Petronas and EOG Resources, is expected to follow imminently.
These developments underscore the UAE's strategic energy outlook. The nation's recent exit from OPEC, effective May 1, was characterized by Upstream CEO Musabbeh al‑Kaabi as a sovereign decision aligned with long-term economic and strategic interests. Operating outside OPEC's quota system provides the UAE with enhanced flexibility to respond to evolving global energy demands.
ADNOC's unconventional projects employ advanced drilling techniques similar to those used in the U.S. shale industry. Pilot production has been ongoing for over a year to assess performance and mitigate investment risks. The company maintains an ambition to reach an oil production capacity of 5 million barrels per day by 2027, emphasizing its commitment to delivering cost-effective and low-carbon-intensity barrels.
