UAE- Adnoc unlocks cost savings of $2b in 5 years

(MENAFN- Khaleej Times) The Abu Dhabi National Oil Company said it has achieved cost savings of $2 billion over the past five years by leveraging advanced technologies and digitalisation to enhance drilling efficiencies and optimise operations.

Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO, said the energy giant is set to seize opportunities to further unlock value from its assets and resources as it builds on the momentum of a successful virtual edition of the Abu Dhabi International Petroleum Exhibition Conference (Adipec).

The minister said Adnoc is keen to accelerate the progress of the transformation it started four years ago, centered on driving down costs and unlocking value.

One way the company is going about this is by leveraging state-of-the-art technologies and this was demonstrated by Adnoc's tech-driven achievements and milestones at the exhibition.

'During Adipec, we made several important announcements that underscored how Adnoc is reinforcing its resilience and doubling down on value creation to ensure we remain competitive and are well-positioned to help enable the post-Covid recovery by delivering a stable and reliable supply of energy to the world, said Al Jaber.

'We have demonstrated significant progress toward our objectives of creating a more profitable upstream business and a more valuable downstream, and enhancing our marketing and trading capabilities. At the same time, we are harnessing technology to reduce costs and maximize performance while strengthening our commitment to responsible production, Al Jaber said.

At the event, Adnoc and ADQ one of the region's largest holding companies unveiled Ta'ziz, a joint venture, which envisages a $5 billion investment in the first phase of development in the upcoming Ruwais Derivatives Park. In a statement, both companies said Ta'ziz would drive the development of industrial projects within the park and act as a catalyst for the UAE's economic diversification and technology-led growth.

The oil major also revealed it had completed the first phase of its large-scale multi-year predictive maintenance project to maximize asset efficiency and integrity across its upstream and downstream operations. The predictive maintenance project is utilizing artificial intelligence (AI) technologies such as machine learning and digital twins to deliver maintenance savings of up to 20 per cent.

In its upstream business, Adnoc announced a significant milestone in its objective of enabling gas self-sufficiency for the UAE with the first delivery of unconventional gas from the country. —

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