ADNOC 2030 INTEGRATED STRATEGY ABU DHABI NATIONAL OIL COMPANY

Transcription

1 ADNOC 2030 INTEGRATED STRATEGY ABU DHABI NATIONAL OIL COMPANY

2 THE WORLD IS CHANGING ENERGY MARKETS ARE FACING A NUMBER OF FUNDAMENTAL SHIFTS 1 Peak oil demand 2 Petrochemicals growth 3 Market shifts to East 4 Future of Gas 5 Digitalization Global oil demand to continue to grow and begin to decelerate by 2030 to ~0.8% CAGR p.a. Petrochemicals demand to grow by ~100% by 2040 ~70% of global energy demand growth driven by non-oecd, especially China and India Natural gas use expected to increase by 45% by 2040 Opportunity to unlock 5-10% extra value in upstream and downstream

3 ADNOC 2030 STRATEGY LOOKING TO THE FUTURE STRETCHING THE VALUE OF HYDROCARBON RESOURCES ALL THE WAY TO CUSTOMERS More Profitable Upstream More Sustainable and Economic Gas Supply More Valuable Downstream More Proactive & Adaptive Marketing Increase capacity Develop new hydrocarbon sources Optimize cost and recovery Unlock undeveloped reservoirs Develop Unconventionals Partner with Upstream Create the world s largest integrated complex in Ruwais Evolve into a Market Shaper Acquire new trading capabilities Proactively act on growth opportunities Achieve leading shipping capabilities Safety and Sustainability Strategic Partnerships Technology, Innovation and Human Capital Large Scale Investments

4 ACHIEVING A MORE PROFITABLE UPSTREAM AND A MORE SUSTAINABLE AND ECONOMIC GAS SUPPLY More Profitable Upstream Increase capacity From 3.0 to 3.5 MMBD capacity Improve cost and recovery efficiency Targeting 70% recovery from mature sources Further savings in operational initiatives Access new hydrocarbon sources New exploration blocks for concession More Sustainable and Economic Gas Supply Unlock undeveloped reservoirs 1.1 BSCFD by 2025 Develop unconventionals 1.0 BSCFD by 2030

5 DELIVERING A MORE VALUABLE DOWNSTREAM Create the world s largest integrated complex in Ruwais Transform Ruwais into a catalyst for further development Introduce crude flexibility Step change in crude processing capacity Partner with Upstream Further integrate with upstream Provide crude coverage while leveraging superior feedstock Evolve into a market shaper Expand international footprint across the value chain Pivot portfolio to command superior & resilient returns Leverage enhanced petrochemical portfolio to participate in high growth high margin markets More Valuable Downstream

6 MORE PROACTIVE AND ADAPTIVE MARKETING TO STRETCH THE VALUE OF THE BARREL More Proactive & Adaptive Marketing Introducing new trading capabilities Build in-house trading capabilities Drive value across the value chain leveraging non-speculative trading capabilities Provide real-time market intelligence for LP optimization Proactive marketing Proactively seek to diversify markets and exposure Protect and grow market share in current destinations Build relevant market share in growing markets Integrate a shipping champion Capture logistics value by increasing shipments on a CFR 1 term Increase and diversify capacity to tap into new products and markets 1 Cost and Freight included in price

7 BUILDING ON CORE STRENGTHS Reliable and responsible partner Partnerships with industry leaders for 45+ years and 30+ global companies From reliable supplier of O&G to leading energy partner, in line with Abu Dhabi aspiration Cost leadership Top quartile cost position World class resource base and feedstock availability Geographical advantage Proximity to growth markets Close proximity to markets totaling ~4-5 Bn people

8 TO EXECUTE OUR STRATEGY ROADMAP 2016 Strengthening the Foundation Cost and production optimization Organization streamlining Cultural change Building Momentum Stretching the value per barrel New concessions and partnerships Downstream focus Capital restructuring and Smart Financing In-Country Value Brand identity Accelerating Growth and Value Creation Leading downstream player Largest integrated downstream complex Secure markets Expanded international downstream footprint Capital projects delivery excellence Owning the Space World-class trading Further revenue diversification World-class downstream margins Digitalization Unconventionals Sustainable gas supply End-to-end value chain integration

9 PARTNERSHIPS AT THE HEART OF ADNOC STRATEGY Onshore Partnerships Leverage reciprocal strengths to unlock value Offshore Partnerships Downstream Partnerships OPEN FOR STRATEGIC PARTNERSHIPS World-class resource base Technology Capabilities Market access

10 ADNOC & THE UAE: THE PLACE TO DO BUSINESS, THE PLACE TO INVEST Advantaged Access to Growth Markets Stable, Open, Attractive Business & Investment Environment An Advanced Technology & Knowledge- Oriented Economy & Society Leading Competitive Position Significant Opportunities for Investment & Unique Value Chain Integration A Strong ADNOC Record of Lasting Partnerships 4-5 Billion people within an 8 hour radius Top quartile globally on Ease of Doing Business 1, top 10 destination for expats 2 Strong government support of incubation, development & adoption of new technologies Top quartile among feedstock cost leaders Opportunities to partner across the ADNOC value chain 45+ year partnership legacy with global industry leaders 1 World Bank; 2 HSBC

11 ADNOC 2030 INTEGRATED STRATEGY ABU DHABI NATIONAL OIL COMPANY