Global crude oil prices should increase slowly over 2016 and
2017, as supply and demand rebalances, the CEO of state-owned Abu
Dhabi National Oil Co., or ADNOC, said Monday.
"Over the last few weeks, we have seen some recovery in prices.
While we expect to experience continue volatility in the short term,
we expect to see a slow but upward improvement in prices in the
medium term", ADNOC CEO Sultan al-Jaber said in an interview with
official news agency Wam.
"Overall, we think 2016 and 2017 will be the years during which
markets will start to rebalance the gap between demand and supply,
barring unforeseen events", he added.
At the same time, ADNOC will continue with its commitment to boost
oil production capacity to 3.5 million b/d by 2018, from around 3
million b/d currently.
"We are focused on maintaining our current level of production as
well as our investment program. And of course, we are also committed
to achieving the overall target of 3.5 million b/d, while we take
into consideration prevailing market conditions," Jaber said.
DOOR STILL OPEN FOR ONSHORE CONCESSION
Abu Dhabi announced new appointments to its Supreme Petroleum
Council, the chief hydrocarbons policy body in the UAE, the first
since 2011.
The emirate's rulers reshuffled the SPC on March 29 in a move that
further tightens the grip of its powerful crown prince on the UAE's
key industry.
Jaber was named to the SPC after taking ADNOC's helm last month. One
of his first priorities is to complete the restructuring of the ADCO
concession, which covers the UAE's biggest onshore oil fields,
contributing crude for export as Abu Dhabi's flagship Murban grade.
ADNOC still has to begin the same process for its offshore fields.
The company concluded negotiations with potential new international
partners for ADCO late last year. Its partners are France's Total
with 10%, Japan's Inpex with 5% and South Korea's GS Energy with 3%,
while ADNOC retains an 82% stake.
"The door is still open to discuss the participation of other
international players in the remaining 22% share in ADCO", Jaber
said.
--Adal Mirza,
adal.mirza@platts.com
--Edited by Maurice Geller,
maurice.geller@platts.com
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