(May 4): The United Arab Emirates’ surprise exit from Opec gives it greater ability to accelerate investment and expand, the head of the country’s state-run oil company said.
“It serves our national interests and long-term strategic objectives, aligns with our industrial, economic, and developmental ambitions, and gives us greater ability to accelerate investment, expand, and create value,” Sultan Al Jaber, chief executive officer of Abu Dhabi National Oil Co said in a speech.
Adnoc touted its plans on Sunday, saying it’s planning to accelerate a growth push with 200 billion dirhams (US$55 billion or $70 billion) in oil-project awards as part of an already-announced US$150 billion programme. The latest statement came the same day as a meeting of the Organization of Petroleum Exporting Countries, which agreed on a modest and symbolic increase in their June production quota levels.
Opec’s control over production levels was a sticking point in the UAE’s participation in the group going back years. UAE Energy Minister Suhail Al Mazrouei has said that the disruption caused by the war in the Middle East created an opportune time for country’s decision to quit the group.
Adnoc has put UAE’s oil production capacity at 4.85 million barrels a day, which is higher than assessments by some other agencies. The country is increasing its capability to five million a day by 2027.
Leaving Opec “is part of a broader effort to reshape our economy and industrial base through a vision that connects energy, technology, and industry, aligning our resources with national priorities to build a stronger, more resilient economy,” Al Jaber said on Monday.
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