Adnoc to continue investments to support economy during 'challenging period'

The company, a major employer in the UAE, will champion opportunities for UAE businesses through its in-country value scheme

The UAE, Opec’s third-largest producer, plans to increase its output capacity to 5 million barrels per day by 2030 Bloomberg

Abu Dhabi National Oil Company will continue to create opportunities for the private sector and ensure business continuity and safety amid the coronavirus pandemic, the company said in a statement.

The UAE, Opec's fourth-largest producer, accounts for 4 per cent of global oil production. State-owned Adnoc accounts for much of that output and had planned to bring 4 million barrels per day to the market in April following the expiry of the Opec+ agreement on production cuts last month.

“As we navigate this challenging period, nothing is more important than the health and safety of our people, as well as the integrity of our assets," said Dr Sultan Al Jaber, Adnoc group chief executive and UAE minister of state.

"Today, as the result of our transformation over the past four years, Adnoc is far stronger, more resilient and better positioned to respond to current market dynamics, including reduced demand and low oil prices," he added.

The company, a major employer in the UAE, will continue to champion its in-country value programme, through which state-owned oil companies ensure opportunities for local manufacturers.

Adnoc's programme was developed ensure a trickle-down effect into the local economy through contracts it awards for projects, which are typically worth billions of dirhams.

The scheme has generated more than Dh44 billion for the UAE economy and created more than 1,500 private-sector jobs for UAE nationals following its launch in 2018, the company said.

"We will continue to invest responsibly and smartly through the downturn with a firm focus on people, performance, profitability, and efficiency, which have always been part of our DNA. In parallel, we will double down on in-country value creation, as well as identify win-win solutions with partners, contractors and suppliers," Dr Al Jaber added.

In February, Adnoc signed a preliminary agreement with the Abu Dhabi Department of Economic Development extending Adnoc's local supplier certification programme across the government’s procurement procedures.

Under the programme, companies would be certified based on their contribution to the country's economy, helping them to secure more work. The certification is now set to apply across the public sector.

Adnoc launched the ICV programme two years ago to coincide with its own 2030 smart growth strategy, which involves signification spending and investment to boost capacity and diversify product lines.