ADNOC has reaffirmed its commitment to a $150 billion investment plan over the next five years, aimed at boosting its production capacity domestically and expanding its international footprint. The company’s board has officially approved this spending, which mirrors the strategy first unveiled three years ago.
Since that announcement, Abu Dhabi’s largest oil producer has established a dedicated international investment arm, XRG, which is actively seeking global opportunities. XRG has significantly increased its enterprise value, growing from $80 billion to $151 billion in just a year, according to ADNOC. The unit has also acquired stakes in ADNOC’s publicly traded companies, with these holdings now valued at over $100 billion. Looking ahead, XRG aims to position itself among the world’s top five suppliers of natural gas and petrochemicals, while also meeting the growing demand driven by the AI and tech industries.
XRG has made significant strides in its expansion, securing liquefied natural gas (LNG) contracts in the U.S. and Africa, investing in gas fields around the Mediterranean, and nearing the completion of a $14 billion acquisition of the German chemical manufacturer Covestro AG.
However, the company’s largest acquisition attempt stumbled in September, when it abandoned its $19 billion takeover bid for Australian natural gas producer Santos Ltd. Despite this setback, ADNOC remains resilient, having recently announced a new deal to explore an LNG project in Argentina.
The company’s board, which is chaired by UAE President Sheikh Mohamed bin Zayed Al Nahyan, also reviewed progress on the Hail and Ghasha offshore natural gas concession. The project’s production target has been raised to 1.8 billion cubic feet per day, up from 1.5 billion, with plans to complete it by the end of the decade.
