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Adnoc raises decarbonisation budget to $23bn

Sheikh Mohamed bin Zayed Al Nahyan chaired the Adnoc meeting Sputnik/Sergei Savostyanov/Pool via Reuters
Sheikh Mohamed bin Zayed Al Nahyan chaired the Adnoc meeting
  • Extra $8bn to be spent
  • Board meeting on Monday

Adnoc is to allocate $23 billion for decarbonisation and lower-carbon projects, it said on Monday, up from a previous target of $15 billion.

The state oil company made the announcement at its annual board meeting, which was chaired by Sheikh Mohamed bin Zayed Al Nahyan, the president of the UAE.

“The increased allocation will include investments to grow the company’s domestic and international carbon management platforms,” Adnoc said in a statement.

Sheik Mohamed “directed Adnoc to grow its diversified portfolio and provide secure, reliable and responsible energy to support the delivery of a just, orderly and equitable global energy transition”, the statement added.

Adnoc has said it aims to reduce its carbon intensity by 25 percent by 2030 and to reach net-zero carbon emissions by 2045.

At a board meeting in late 2022, Adnoc approved a five-year business plan and capital expenditure of AED550 billion ($150 billion) for 2023/27. It also brought forward its target of expanding oil production capacity by 5 million barrels per day to 2027.

On Monday Adnoc said its “in-country value” programme had driven $11.2 billion into the UAE’s economy in 2023, and the board endorsed a goal for the initiative to generate $48.5 billion over the next five years. 

Adnoc created 6,500 private sector jobs for Emirati citizens in 2023 through the programme, it added.

Since 2018, the in-country value project has brought $51 billion in value to the UAE economy and created 11,500 jobs for Emiratis.

Adnoc also said it had signed local manufacturing deals worth $16.9 billion with local and international companies since 2022. It has a target to locally manufacture $19 billion worth of products it plans to procure by 2027.