ADNOC has outlined a clear strategic vision for growth and sustainability
The company's aggressive and comprehensive integration of AI across its operations marks a pivotal shift towards enhanced efficiency, sustainability, and innovation
The Abu Dhabi National Oil Company (ADNOC), a cornerstone of the UAE’s economy and a significant player in the global energy landscape, has demonstrated considerable dynamism over the past year.
While maintaining its position as a leading oil producer with a substantial capacity of 4.85 million barrels per day (bpd), the company has concurrently embarked on a strategic transformation, placing a strong emphasis on technological advancement, particularly the integration of artificial intelligence (AI), and pursuing ambitious growth initiatives across its various subsidiaries.
These developments signal ADNOC’s commitment to not only meeting the current global energy demands but also to shaping a sustainable and efficient energy future.
A key highlight of ADNOC’s recent activities has been the remarkable success of its ADNOC Gas subsidiary.
The company successfully completed a $2.84 billion market offering, totalling 3.1 billion ordinary shares, representing 4 per cent of ADNOC Gas’ total share capital, at a price of AED3.40 ($12.49) each.
The strategic acquisition of Ruwais LNG is a significant step in ADNOC’s ambition to become a leading global LNG player, as it is expected to more than double the company’s existing LNG production capacity in the UAE.
This move positions ADNOC to capitalise on the increasing global demand for natural gas as a crucial fuel in the energy transition.
AI’S TRANSFORMATIVE POTENTIAL
Beyond its financial achievements and strategic acquisitions, ADNOC has made remarkable strides in integrating artificial intelligence (AI) across its operations, recognising its transformative potential in the energy sector.
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AR360 consolidates data from multiple platforms to optimise field development planning |
The company has developed and trialed ENERGYai, an advanced AI solution hailed as the world’s first-of-its-kind agentic AI solution tailored for the energy transformation.
This innovative solution combines large language models with agentic AI, trained on ADNOC’s extensive proprietary data, to enhance efficiency and accelerate the transition towards a more sustainable energy industry.
The "agentic" nature of ENERGYai signifies its capacity to operate with a high degree of autonomy, proactively identifying and implementing operational improvements based on pre-set objectives, rather than merely reacting to human commands.
This level of independent decision-making promises to significantly enhance the speed and efficiency of various critical tasks across ADNOC’s value chain.
The development of ENERGYai is a collaborative effort between ADNOC, its AI-focused subsidiary AIQ, and technology giants Microsoft and G42, highlighting a strategic approach to leverage cutting-edge AI expertise and infrastructure.
A successful proof-of-concept trial of ENERGYai has already demonstrated its potential, achieving a remarkable 70 per cent improvement in accuracy in key aspects of seismic interpretation for upstream exploration.
This tangible outcome underscores the power of AI to revolutionise exploration activities, leading to faster discoveries and reduced costs.
ADNOC is implementing a suite of AI-powered solutions across its various operations:
• RockInsight utilises AI to provide detailed analysis of oil and gas reservoirs, visualising subsurface rock structures with high precision, thereby accelerating analysis and optimising resource management.
• AR360 serves as an intelligent reservoir management tool, consolidating data from multiple platforms to optimise field development planning by strategically balancing new well drilling, enhancing the performance of existing wells, and maximising overall production.
• In the challenging environment of the Shah Field, Remal, an AI-powered solution, forecasts sand accumulation patterns, enabling proactive resource allocation, cost reduction, and enhanced safety.
• The company’s Well Digitalisation Program is a key initiative to automate operations across its value chain, equipping wells with sensors and control valves to collect real-time data, transmitted via a private 5G network to control rooms, enabling remote monitoring and autonomous operation through AI tools like AIQ’s RoboWell. This program promises to enhance efficiency, improve safety, and minimise operational downtime.
• Furthermore, ADNOC’s Integrated Logistics Management System (ILMS) employs AI to optimise vessel scheduling for product delivery, providing optimal route options and facilitating proactive, data-driven decisions for vessel planners.
• Lastly, the Centralised Predictive Analytics and Diagnostics (CPAD) system uses AI to continuously monitor operations, track historical and real-time data, diagnose anomalies, and proactively address maintenance challenges, ensuring smoother operations and reduced downtime.
These comprehensive AI deployments underscore ADNOC’s overarching ambition to become the world’s most AI-enabled energy company.
FUTURE GROWTH & STRATEGY
Looking towards the future, ADNOC has outlined a clear strategic vision for growth and sustainability.
The company aims to increase its oil production capacity to 5 million bpd by 2027, with a focus on its lower carbon-intensive Murban crude oil.
ADNOC Drilling, a key subsidiary, has announced ambitious growth plans, projecting over $1 billion in investments for 2025.
This investment is expected to drive growth across its onshore, offshore, and oil field services segments, with plans to acquire additional rigs and oil field service equipment, aiming to reach a rig count of over 148 by 2026 and more than 151 by 2028.
ADNOC Drilling is also exploring potential regional expansion opportunities in Jordan, Kuwait, and Oman, signaling its intent to broaden its operational footprint.
Strategic joint ventures, such as Turnwell with SLB and Patterson-UTI, are being established to unlock Abu Dhabi’s unconventional energy resources, maximising the utilisation of the UAE’s energy potential.
ADNOC L&S, the company’s shipping and logistics arm, anticipates a significant "mid-to-high" 40 per cent year-on-year increase in its shipping revenue for 2025, driven by favourable charter rates and the addition of new dual-fuel very large crude carriers (VLCCs) to its fleet.
In a move towards international diversification of its gas assets, ADNOC is reportedly considering purchasing natural gas fields in the US, which would provide access to both fuel and feedstock for its expanding chemicals and LNG export facilities.
ADNOC is also strongly committed to sustainability, demonstrated by its comprehensive 2030 sustainability goals.
These goals include achieving near-zero methane emissions by 2030, planting 10 million mangrove seedlings, increasing female representation in technical positions to 25 per cent, and ultimately reaching Net Zero emissions by 2045.
The strategic partnership between ADNOC Gas and Emirates Water and Electricity Company (EWEC) for the long-term supply of flexible natural gas underscores the crucial role of natural gas in facilitating the UAE’s energy transition.
Furthermore, the launch of XRG, a new international lower-carbon energy and chemicals investment company with an enterprise value exceeding $80 billion, signifies ADNOC’s commitment to investing in and developing a diverse portfolio of lower-carbon energy solutions on a global scale. This strategic direction reflects a broader understanding of the evolving global energy landscape, where balancing energy security with environmental responsibility is paramount.
The leadership of the UAE and ADNOC have consistently emphasised the importance of technology and strategic partnerships in achieving these ambitious goals.
Suhail Mohamed Al Mazrouei, the UAE’s Minister of Energy and Infrastructure, has stated that the Gulf state intends to play "a key role" in AI in the Middle East and worldwide, indicating a national-level commitment to technological advancement that strongly supports ADNOC’s AI-driven strategies. This governmental focus on AI provides a strong impetus for ADNOC to continue its pioneering efforts in this field within the energy sector.
Dr Sultan Al Jaber, ADNOC Managing Director and Group CEO, has been a vocal advocate for the integration of AI within the company.
Speaking at CERAWeek in March 2025, he highlighted the significant progress ADNOC has made in this area: "We first applied AI to our operations 5 years ago. Today, we have integrated AI comprehensively across the value chain...source world".
This statement underscores the tangible benefits ADNOC is already realising from its AI investments and its firm commitment to leading the industry in this transformative technology.
Combined with ambitious growth plans across its various business segments and a strong commitment to sustainability, ADNOC is not only solidifying its position as a major global energy provider but also actively shaping the future of the energy sector through technological leadership and strategic foresight.
Its aggressive and comprehensive integration of AI across its operations marks a pivotal shift towards enhanced efficiency, sustainability, and innovation.
By Abdulaziz Khattak