Sultan Al Jaber to “Al Ittihad”: “ADNOC” plans to redirect 160...

a dialogue: Hamad Al Kaabi

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, confirmed that ADNOC is a major catalyst for industrial, economic and social growth in the UAE, noting that the decision to offer a minority stake in ADNOC shares Drilling” for its IPO on the Abu Dhabi Securities Exchange comes as part of the “ADNOC Value Enhancement” program, which confirms ADNOC’s commitment to the principles set by the wise leadership to launch a new era of growth in the UAE for the next fifty years. His Excellency said in an interview with Al-Ittihad: This offering will contribute to obtaining additional capital to be re-employed in new opportunities to enhance growth, and will also contribute to attracting foreign investments and enhancing the competitiveness and attractiveness of the local market, which will benefit the overall performance of the national economy. His Excellency stated that ADNOC Drilling is a safe, stable and reliable investment, as it plays a major and important role in enabling ADNOC to implement its plans to increase its production capacity by 25% to reach 5 million barrels per day by 2030 and achieve gas self-sufficiency for the UAE. His Excellency Dr. Sultan Ahmed Al Jaber pointed out that ADNOC’s business and projects contributed to the redirection of more than 76 billion dirhams to the local economy, and the provision of more than 2,000 jobs for UAE nationals in the private sector through its program to enhance the local added value. His Excellency revealed that ADNOC plans, as part of its program to increase capital expenditures, to redirect more than 160 billion dirhams to the local economy through its program to enhance the local added value, and this commitment contributes to providing more jobs for skilled citizens, pushing economic development efforts, and supporting growth. sustainable development in the post-Covid-19 pandemic.

The following is the text of the interview :
What are the reasons for offering ADNOC Drilling’s shares to the public, and how does this offering benefit ADNOC, the local economy and the investor?
ADNOC is a major catalyst for industrial, economic and social growth in the UAE, and we constantly seek in all our actions and initiatives to harness energy resources to serve the country, in accordance with the vision of the founding father, Sheikh Zayed bin Sultan Al Nahyan, “may God rest his soul.” The country’s economic ambitions.. Our goal is for ADNOC to continue its role as an active contributor to building the best and most active economy in the world, in line with the vision of the wise leadership, and with the principles of the next fifty years for the UAE.
The decision to offer a minority stake in ADNOC Drilling shares for public subscription on the Abu Dhabi Securities Exchange comes as part of the ADNOC Value Enhancement Program, which confirms ADNOC’s commitment to the principles set by the wise leadership to launch a new era of growth in the UAE for the next fifty years. And redouble efforts to enhance and increase the value of oil and gas resources in order to serve the economic interests of the UAE. Therefore, this offering represents a new step in our continuous efforts and initiatives to create and increase value from all our assets and businesses and expand our investment base. This step is of great importance as it confirms the position of the UAE as a global economic and investment destination, and it also reflects ADNOC’s approach to contributing to growth plans and providing an opportunity for the citizens of the country. UAE to participate in ADNOC’s growth and success as shareholders in ADNOC Drilling.
For ADNOC, this offering will contribute to obtaining additional capital to be reinvested in more initiatives and projects for growth, progress and expansion, including the development of “ADNOC Drilling” to ensure its continued success in the long term, and for the local economy, the offering will contribute to attracting investments foreign market, and enhance the competitiveness and attractiveness of the domestic market, which will benefit the overall performance of the national economy.
The offering of ADNOC Drilling shares would secure additional capital that would be re-employed in new opportunities to promote growth, in addition to attracting foreign investments, and providing an opportunity for potential individual and institutional shareholders to benefit from the success of ADNOC and its subsidiaries. For securities that are witnessing significant growth, and are considered today among the most active and competitive financial markets in the region, and we are confident that this offering will give more momentum and qualitative weight to market activities.

How does ADNOC Drilling fit in with the investment environment in the UAE and with future trends?
Thanks to the directives and vision of the wise leadership, ADNOC has played an important and major role in the great growth and renaissance witnessed by the UAE during the past fifty years. To establish the fifty principles that charted a clear path that motivates us and pushes us forward with confidence, optimism and positivity about the future.
The UAE provides a vibrant, attractive, incubating and supportive environment for growth and progress in various fields, and enjoys great confidence from foreign investors thanks to stability, security and safety, openness and tolerance, a clear future vision, and a focus on growth and building promising and fruitful partnerships capable of achieving positive returns for all parties, and therefore, The UAE is an ideal environment for offering and listing shares, especially for national companies that aspire to growth and expansion.
As we prepare for the next fifty years, we are preparing for a new era of economic, social, scientific and technical growth in the UAE, and we are continuing to intensify our efforts to ensure that ADNOC continues its role as an active contributor to creating and enhancing long-term value by redoubling efforts to achieve the maximum profit margin from each Our operations and assets, and from every barrel of oil that is produced refining.
ADNOC bears a responsibility to ensure the optimal investment of oil and gas resources and assets to contribute to the economic growth of the UAE, and we always strive to focus on contributing to the upgrading of the competitiveness of national products and industries.

As for the role that ADNOC Drilling can play, it is the continued growth and development of its capabilities and capabilities, and the enhancement of its success process to achieve its interests and the interests of investors in the work of drilling and preparing wells, in addition to enhancing the national added value. For example, ADNOC Drilling purchased 17 fully-made excavators in the UAE, which contributed to redirecting more than 7.3 billion dirhams to the local economy. More broadly, ADNOC’s business and projects contributed to redirecting more than 76 billion dirhams to the local economy. and providing more than 2,000 jobs for UAE nationals in the private sector through its In-Country Value Enhancement Program. ADNOC also plans, within the framework of its program to increase capital expenditures, to redirect more than 160 billion dirhams to the local economy through its program to enhance the local added value, and this commitment contributes to providing more jobs for skilled citizens, pushing economic development efforts and supporting sustainable growth at some point. After the COVID-19 pandemic is over.
As part of ADNOC Drilling’s plans for growth and expansion, a partnership was concluded with Baker Hughes, which owns 5% of ADNOC Drilling’s shares, which gives it the advantage of benefiting from the expertise, knowledge and advanced technology of Baker Hughes, which is the largest and most important global company in the field of drilling oil wells. ADNOC Drilling also entered into a partnership with Helmreich & Payne, a company specialized in drilling technologies and solutions for oil and gas wells, whereby ADNOC Drilling will acquire eight onshore drilling rigs from Helmreich & Payne, which will invest 367 million dirhams in ADNOC Drilling shares. This step will also contribute to enhancing the technical and technological capabilities of ADNOC Drilling and guarantee it a sure path of confident growth in its field of specialization, in a way that contributes to ADNOC’s main growth plans, which have a clear, announced and approved strategy for smart growth.

How does this offering fit in with ADNOC’s overall strategy?
This proposed offering represents a new achievement after the successful offering of ADNOC Distribution’s shares, and an important step in our continuous efforts and initiatives to create and increase value from all our assets and businesses, through which we were able to build quality partnerships, conclude successful deals, attract new capital and expand our investment base.
Over the past few years, ADNOC was able to attract a group of the most prominent investment institutions and investors in the world, such as BlackRock, KKR, GIP and Brookfield, through a series of smart deals through which we were able to achieve great value from our assets, and consolidate the position of the UAE as a major and reliable destination for investments. Globalism. Since 2016, ADNOC has attracted more than $64.5 billion in foreign direct investment to the UAE, and we continue to develop additional investment opportunities and partnerships in various aspects of our business value chain to increase value from every barrel of crude oil we produce.
Earlier this year, we achieved a major milestone with the start of trading in Murban contracts on the Abu Dhabi Intercontinental Futures Exchange, allowing Murban crude to be traded freely and on a large scale for buyers and traders around the world, which contributed to providing greater value to “ADNOC” and our partners and strengthening the position of Abu Dhabi and the UAE are a leading global energy center.
Through this listing, we are once again providing investors with an attractive investment opportunity to benefit from the continuous development and strong growth of ADNOC Drilling, which is an essential link in the energy system in Abu Dhabi.

Reduce emissions intensity by 25% by 2030
How does offering a stake in ADNOC Drilling support ADNOC’s efforts to achieve its ambitious goals in the field of environmental, social and institutional governance?
With the increase in the world’s need to produce more energy with as few emissions as possible, the growth and development of “ADNOC Drilling” contribute to ensuring the supply of the global market with quantities of oil that are considered the lowest in terms of emissions, in addition to that, “ADNOC Drilling” is a major enabler for the production of “Murban”. , the main crude for Abu Dhabi’s oil production, of which emissions levels are less than half of the average emissions in the global oil and gas sector. ADNOC also has a clear vision to strengthen its position and leadership in the field of sustainability, so all the companies of the “ADNOC” group, including “ADNOC Drilling”, are working to enable this vision and achieve the 2030 sustainability goals. We aim to reduce emissions intensity by 25% by 2030 Through its operations, ADNOC Drilling will contribute to achieving this goal. Over the past five years, the company has been able, through energy efficiency initiatives, to reduce total carbon dioxide emissions by 147,000 tons and diesel consumption by 13 million gallons.

Plans to achieve self-sufficiency in gas
Why is ADNOC Drilling a good investment?
Through this proposed offering of a stake in ADNOC Drilling, ADNOC provides an attractive investment opportunity that allows investors to benefit from the continuous development and strong growth achieved by ADNOC Drilling, as the exclusive provider of drilling services for exploration, development and production companies in the ADNOC Group under a relationship On a long-term contract, ADNOC Drilling is a safe, stable and reliable investment, as it plays a major and important role in enabling ADNOC to implement its plans to increase its production capacity by 25% to reach 5 million barrels per day by 2030 and achieve gas self-sufficiency for the UAE .. These goals require drilling thousands of new wells, which will provide a strong and stable growth path for ADNOC Drilling in the future. As you know, the UAE has conventional oil reserves of 107 billion barrels of recoverable oil, which puts it in the sixth place globally in terms of oil reserves, and this enhances opportunities for expansion and growth in drilling in the future.
ADNOC Drilling also has a strong financial position, stable profit margins, in addition to nearly fifty years of strong and successful operational performance. This track record of continuous achievements and success is based on a world-class asset base that includes a fleet of diverse drilling rigs and advanced equipment, which is The largest of its kind in the region, committed and highly experienced cadres possessing the best engineering skills and expertise in the field of drilling, in addition to continuous investments in the field of modern technology.
ADNOC Drilling plans to significantly expand its rig fleet, add various new rigs, develop its well-drilling program, and support its capabilities in the field of drilling and preparing wells to take advantage of new growth and development opportunities in all aspects of the value chain for exploration, development and production. The ADNOC Group will remain the owner of the majority stake and a long-term committed shareholder in ADNOC Drilling, because we are confident that its strong position and presence in the market will ensure further growth, which will positively reflect on the UAE, Abu Dhabi and future shareholders in the company.