The new conventional oil discovery boosts the UAE’s conventional crude reserves to 107 billion barrels of recoverable oil,

Abu Dhabi National Oil Company’s (Adnoc) discovery of 22 billion barrels of unconventional oil and two billion barrels of conventional crude reserves is credit positive for the emirate and attract more foreign investment in to the UAE and region as well, say official and economists.

The new conventional oil discovery boosts the UAE’s conventional crude reserves to 107 billion barrels of recoverable oil, the sixth largest reserves in the world. Abu Dhabi’s Supreme Petroleum Council on Sunday also approved $122 billion (Dh448 billion) of capital expenditure plan for 2021-25.

Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE’s Minister for Energy and Infrastructure, on Monday said the latest oil discoveries are part of Adnoc’s efforts to increase production capacity to five million barrels per day by 2030.

The discoveries “reflect the constant development operations carried out by Adnoc in its endeavour to reach its target of increasing oil production capacity to five million bpd by 2030,” Al Mazrouei said on his ministry’s Twitter account.

The national energy firm also plans to pump Dh160 billion back into the UAE economy between 2021-2025, giving strong boost to country’s overall economy and help diversify its income source.

The minister said the new oil discoveries will drive economic growth in the UAE and strengthen its position as a credible energy supplier.

“The discoveries will support the UAE’s plans for the next fifty years and its overall development. They will also attract many foreign investors who consider the country a haven amidst the rapid current developments witnessed by the entire world, as well as a platform for generating new investment opportunities in all segments of the oil sector,” added Al Mazrouei.

The UAE’s energy minister explained while affirming that the country is keen to diversify its energy resources to meet growing demand and maintain a balance between economic needs and environmental objectives, in line with the directives of the UAE’s leadership and the National Energy Strategy 2050.

Simon Ballard, chief economist at First Abu Dhabi Bank (FAB), said Abu Dhabi’s credit profile is buoyed by significant oil reserves discovery.

“While the long-term strategic focus in this region will remain on diversifying for the post-hydrocarbon era, we would suggest that this latest expansion of oil reserves should help to buoy the near-to-medium term credit metrics and allure of this region,” Ballard said in a note on Monday.

khaleejtimes