Adnoc’s $12.76 billion brand value witnessed a 19% increase over the previous year.
Adnoc maintained in 2022 its position as the UAE’s most valuable brand for the fourth consecutive year, according to a new report from Brand Finance, the world’s leading independent brand valuation consultancy.
Adnoc’s $12.76 billion (Dhs47 billion) brand value witnessed a 19 per cent increase over the previous year and a 174 per cent increase since 2017, said an Adnoc statement on Wednesday.
Adnoc ranked the first valuable brand in the UAE, the second in the Middle East and North Africa, and the ninth on the top ten most valuable brands in the Oil &Gas (O&G) sector.
Brand Finance also ranked Dr Sultan Bin Ahmed Al Jaber, Managing Director and Group CEO of Adnoc, number one among all O&G CEOs globally outside the United States and China for the second consecutive year, and number one in the UAE and the Middle East.
Over the past 12 months, the most significant drivers of Adnoc’s brand value growth included consistency to grow responsibly and achieving many accomplishments within its new energy strategy to strengthen its partnerships in clean and renewable energy and hydrogen. Also, its commitment to best practices and its track record in the field of Health, Safety and Environment (HSE) and the success of its programme to enhance the local added value, attract foreign direct investment and improve the country’s position as a preferred destination for investment.
This paradigm shift witnessed several development initiatives in the company, including the development of a new approach to smart partnerships, creating investment opportunities to attract foreign capital, launching a successful programme to enhance in-country value, implementing three successful IPO subscriptions to Adnoc Distribution, AdnocDrilling, and Fertiglobe, among other programmes.
In line with the leadership directives, Dr. Al Jaber, in his capacity as the UAE’s Special Envoy for Climate Change, is working to promote the country’s proactive approach and its effective contribution to global efforts to reduce climate change, adapt to its repercussions, and consolidate the country’s leading position in the field of climate action.
According to Brand Finance, brand value is the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand value is determined through a balanced scorecard of factors, including marketing investment, stakeholder equity, and business performance.
Earlier Abu Dhabi National Oil Company (Adnoc) announced the award of a $946 million (Dhs3.47 billion) Engineering, Procurement, and Construction (EPC) contract for the strategic long-term development of its Umm Shaif field.
The investment supports Adnoc’s oil production capacity plans of five million barrels per day (mmbpd) by 2030 while ensuring energy security for the United Arab Emirates and partners around the world.
The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded by Adnoc Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. The scope of the award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (mbd) crude oil production capacity, increase efficiencies and enhance the field’s long-term potential.
Significantly, over 75 per cent of the total award value will flow back into the UAE economy under Adnoc’s In-Country Value (ICV) programme, ensuring that more economic value remains in the country from the contracts it awards. This reinforces Adnoc’s commitment to the UAE’s ‘Principles of the 50’, the economic blueprint for sustainable growth announced by the UAE’s leadership in 2021.
Yaser Saeed Almazrouei, Adnoc Upstream Executive Director, said, “This important award for the long-term development of Adnoc’s pioneer offshore Umm Shaif field will maximize efficiencies while maintaining future output and supporting Adnoc’s strategic objective of five million barrels of oil production capacity a day by 2030.
In addition, the development plan for Umm Shaif underpins Adnoc’s commitment to maintain its position as a leading low-cost oil producer and strengthens our role as a reliable energy provider to customers around the world.
“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record. Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic growth as we look to our next 50 years.”
The EPC contract, which is due to be completed in 2025, comprises two packages for network expansion and new well-head towers. The first package includes modifications and extension of existing facilities with installation of new subsea cables and pipelines for debottlenecking. The second package includes the design of three lean well-head towers with associated new pipelines.
The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity.
Ahmad Saqer Al Suwaidi, CEO of Adnoc Offshore, said, “This contract is an important contributor to Adnoc Offshore’s plans as we build our production capacity to over 2 million barrels a day in the coming years in support of Adnoc’s smart growth strategy. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through Adnoc’s ICV Programme.”
Umm Shaif is Adnoc’s most historic offshore asset. 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil (July 1962). Continuing investment and development at Umm Shaif ensures responsible maximization of profitability, enabling greater value for the UAE, Adnoc and its partners.
Meanwhile in December Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi National Energy Company (Taqa) announced a $3.6 billion strategic project to significantly decarbonise Adnoc’s offshore production operations, further strengthening Adnoc and Taqa’s position in driving and leading sustainability efforts and supporting the United Arab Emirates (UAE) ‘Net-Zero by 2050 Strategic Initiative’.