Accelerating transformation25 October 2018
With creative partnership opportunities proving inimitably vital for future growth, ADIPEC is realising its full potential at this year’s event, to be held on 12–15 November 2018. World Expro hears more about those succeeding in the industry and what's in store.
The decision by Abu Dhabi’s Supreme Petroleum Council to offer six offshore and onshore oil and gas blocks for competitive bidding has proved to be enlightening. This represents a major advance in how Abu Dhabi unlocks new opportunities and maximises value from its hydrocarbon resources. With the first bid round planned to conclude in the months ahead, successful bidders will enter into agreements in 2019, granting exploration rights and, provided defined targets are achieved in the exploration phase, have the opportunity to develop and produce any discoveries, alongside ADNOC.
The launch of these large licensing blocks is an important step for Abu Dhabi and ADNOC, as the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) realises the full potential of its resources, maximises value for its stakeholders and accelerates the exploration and development of new commercial opportunities. And, as the company expands its downstream portfolio, the new licensing blocks will reinforce long-term production growth ambitions and build on the successful legacy the company maintains as a leading upstream player.
The downstream growth strategy and licence blocks represent rare and exciting opportunities for investors to collaborate, as it further redefines and transformsthe ADNOC Group. Against the global landscape of accelerating change throughout the oil and gas industry, ADIPEC is the meeting point where thought leaders embrace change and capture new opportunities to deliver profitable market growth and value creation across the oil and gas supply chain.
Fundamental to this new thinking is the type of agile, creative partnership and investment models being implemented by ADNOC.
These new collaborative ecosystems enable sharing, innovatation and growth, as the partners navigate the emerging trends that are shaping the industry.
DMG events and ADNOC – serving as the former’s host – extend a warm welcome to all of its exhibitors, visitors and delegates to the ADIPEC, which takes place at the Abu Dhabi National Exhibition Centre on 12–15 November 2018. Held under the patronage of H.H. Sheikh Khalifa Bin Zayed Al Nahyan, president of the UAE, ADIPEC is one of the world’s largest, most important and influential oil and gas events that brings together industry stakeholders and experts to share knowledge and exchange ideas on a brighter future for the energy sector.
Building on the strength of the past 34 years, ADIPEC 2018 is shaping up to be another recordbreaking year, bringing new features and enhancements.
On the exhibition side of the event, the 2018 edition will see the event grow to cover 155,000m² of space across 15 dedicated exhibition halls, hosting over 2,200 companies, including 38 NOCs and IOCs, and over 28 international country pavillions.
ADIPEC 2018 will see the launch of three new dedicated exhibition zones, covering Digitalisation, Heavy Machinery, and a dedicated Dive Zone in the Offshore & Marine Hall, with the Digitalisation sector weaved into the strategic and technical conference programmes, thereby highlighting the event’s versatility and forwardlooking nature. Key features of ADIPEC 2018 will include the Middle East Petroleum Club, while the Offshore & Marine subsector will host a new Middle East Maritime Club, which is an extension of the existing club, aimed at providing a dedicated and secure business and networking area for offshore and marine’s CEOs and business leaders.
Meanwhile, conference discussions will take place across several streams including global ministerial panels, global business leaders panels, C-Suite dialogues, plus strategic roundtables at the Middle East Petroleum Club.
The international conference programmes will welcome CEOs from all over the globe, span 200 sessions, 980 expert speakers and is expected to attract over 10,400 delegates.
Revolve to evolve
The oil and gas market continues to evolve rapidly, presenting the industry with challenges and, at the same time, exciting new opportunities, ADNOC is embracing these opportunities, by transforming and strengthening the company, to make for a more resilient, efficient and performance-driven environment. In tandem, the company is investing in growth across its upstream and dsownstream value chains, with a 3.5 million barrel per day upstream production capacity target, that it will achieve by the end of this year, and an ambitious downstream strategy that will triple its petrochemical production capacity by 2025.
This growth will deliver multiple openings for new partnerships and attractive investments for those who appreciate the scale of the opportunity, who share the same values and who are willing to accompany the company on its journey. To maximise value from these opportunities, ADNOC is accelerating transformation, creating a new business model for national oil companies, while shaping and setting commercial terms that benefit ADNOC partners and customers.
ADNOC has driven down production costs, increased operational margins, and enhanced financial structure to ensure a smarter use of capital and assets. This has been matched by a rationalisation and culture change, aimed at raising operational efficiency, optimising unit costs per barrel, enhancing profitability and strengthening overall performance.
In parallel, the company has launched a new and expanded strategic partnership and investment model, and is proactively managing its portfolio of assets and capital, to unlock value and drive new growth.
Global industry growth
Since the last ADIPEC, two major opportunities have been announced for existing and potential new partners to participate in the next stage of developing the UAE and Abu Dhabi’s hydrocarbon resources. In May, at Downstream Investment Forum, ADNOC unveiled plans to invest AED165 billion ($45 billion) with partners, over the next five years, to become a leading global downstream player. The construction of an aromatics plant, a mixed feed cracker and a new refinery, along with upgrades to existing assets, will underpin the downstream strategy that will significantly expand its refining and petrochemical operations, and undertake highly targeted overseas investments to secure greater market access.
Building on the strengths and competitive advantages of the Ruwais Industrial Complex, ADNOC will create the world’s largest and most advanced integrated refining and petrochemicals complex. The company will increase the range and volume of high-value downstream products, secure better access to growth markets and create a local manufacturing ecosystem that will significantly stimulate in-country value creation, private sector growth and employment. The strategy is expected to add more than 15,000 skilled jobs by 2025 and contribute an additional 1% to GDP per year.