The Abu Dhabi National Oil Company (ADNOC) has confirmed that it currently has an oil production capacity of around 3.3mn barrels per day (bpd), and remains on track to increase its production capacity to 3.5mn bpd by the end of 2018.
ADNOC has the ability to increase oil production by several hundred thousand barrels of oil per day, should this be required to help alleviate any potential supply shortage in the market. ADNOC emphasised that, working in close cooperation with the UAE Ministry of Energy and Industry, it stands ready to increase its production in alignment and coordination with the Organisation of the Petroleum Exporting Countries (OPEC) and the OPEC and non-OPEC Joint Ministerial Monitoring Committee.
The announcement follows the recent meeting of OPEC and non-OPEC members in Vienna at which a production increase of around 1mn bpd was agreed. Oil analysts have predicted that with the continued severe output declines in Venezuela, force majeure being declared in Libya and imminent impacts on Iranian supply, and its access to the global market following US President Donald Trump’s decision to re-impose sanctions on the Islamic republic, the likes of Saudi Arabia and the UAE will step in to make up for any shortfalls.