Adnoc keeps output target but monitors market conditions, says chief executive

Adnoc is sticking with an output capacity target of 3.5 million barrels per day but is taking “into consideration prevailing market conditions”, says Sultan Al Jaber, the chief executive.

The head of Adnoc did not comment on whether it might be affected by any deal at Doha later this month, when the UAE Energy Minister, Suhail Al Mazroui, would be attending a meeting to discuss a move by Opec and non-Opec producers to freeze output at current levels to help shore up sagging oil prices.

“Adnoc has always been an agile company capable of quickly responding to the market and ensuring that its supply is aligned with projected demand,” Mr Al Jaber said.

But, he said, “most importantly, we are focused on maintaining our current level of production as well as our investment programme … We are also committed to achieving the overall target of 3.5 million bpd, while we take into consideration prevailing market conditions.”.

Adnoc had been talking of a target date of reaching that overall level of production capacity by the end of next year, but that has shifted to 2018, which industry observers say is mainly down to delays in bringing in additional partners to develop its onshore Adco concessions, which have a target to raise production to 1.8 million bpd from 1.6 million bpd.

Abu Dhabi’s offshore fields are on course to increase production to 1.7 million bpd from 1.4 million bpd as part of the Government’s US$25 billion investment to increase the country’s overall production.

The UAE’s output climbed to 3.1 million bpd in January this year from 2.8 million bpd in 2014, mainly owing to increased production at offshore fields.

amcauley@thenational.ae

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