By: AGBI

Abu Dhabi National Oil Company, better known as Adnoc, will invest billions of dollars to maintain its oil and gas operations as the Middle East’s share of global oil production is predicted to grow in the coming years.

The state-owned oil company’s board has allocated $150 billion in capital expenditure between 2026 and 2030 following approval from the UAE president Sheikh Mohamed bin Zayed Al Nahyan during a meeting on Monday.

Adnoc’s oil reserves have increased to 120 billion stock tank barrels, up from 113 billion, while natural gas reserves rose to 297 trillion standard cubic feet from 290 trillion, the company said in a statement.

The UAE has the world’s sixth-largest oil reserves and the seventh-largest gas reserves, the statement said.

The announcement by Adnoc comes as the Middle East’s share of worldwide oil production is predicted to climb to 40 percent by 2050, from 31 percent a year ago, the International Energy Agency said earlier this month.

The IEA estimates Middle Eastern crude production was 30.2 million barrels per day (mbpd) in 2024, out of a worldwide total of 97.5 mbpd.

Regional output will rise to 33.6 mbpd in 2035 and just below 44 mbpd in 2050, the report states, which would represent 33 and 40 percent respectively of global production, according to AGBI calculations.

The value of XRG, Adnoc’s global investment arm, has grown to $151 billion, up from more than $80 billion at its launch in November 2024.

The board approved the creation of Adnoc Ghasha, a new operating company for the Ghasha offshore concession, which is expected to produce 1.8 billion standard cubic feet of gas and 150,000 barrels per day of oil and condensates.

“Construction of the Hail and Ghasha mega project, a key development within the Ghasha concession, is now progressing at pace,” the statement said.

Adnoc said it has made new oil and gas discoveries totalling more than 1.2 billion barrels of oil equivalent. It did not divulge when these discoveries were made.

Over the next five years Adnoc will invest $60 billion into the UAE economy through the in-country value programme and the “Make it in the Emirates” initiative.

Since 2018 the programme has put $84 billion back into the economy and helped employ