The Supreme Petroleum Council (SPC), Abu Dhabi’s top oil industry decision-making body, yesterday approved Abu Dhabi National Oil Company’s (Adnoc) five-year business plan and budget, which includes a commitment to boost oil production by 400,000 barrels per day (bpd) by 2018 to 3.5 million bpd.
Other measures include a commitment to increase petrochemicals output by more than two-and-a-half times, to more than double petrol production, and to raise fertiliser output.
Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the Armed Forces and Vice Chairman of the SPC, said the strategy that Adnoc chief executive Sultan Al Jaber and his board had set out would “build on the foundations laid in the past eight months, during which Adnoc embarked on a journey to evolve into a more agile and resilient company that is strategic, commercially minded and performance driven”.
Since Mr Al Jaber took over this year, the company has undergone a series of major changes, including a nearly complete change of the most senior management, including major corporate divisions and chiefs of the main oil and gas operating companies.
Mr Al Jaber has also combined companies, including the offshore units, Zadco and Adma-Opco, to reduce the number of operating companies to 15 from 18, and taken other measures to streamline and cut Adnoc’s costs after the sharp drop in oil prices over the past two years.
Mr Al Jaber described the approval of the five-year plan and budget, as well as the strategy set out through to 2030, as a “momentous milestones” for the company.
Under the strategy, Adnoc’s upstream will remain its most profitable segment although the company plans to “enhance our downstream and petrochemical businesses, to take advantage of growing demand for higher value products”, Mr Al Jaber said in a statement released after the SPC’s approval.
Adnoc reaffirmed its intention to boost oil output by 400,000 bpd to 3.5 million bpd in 2018. That target was originally set for the end of next year, and the company yesterday left it open as to whether there might be any restriction on output in the meantime, under any deal that might be reached by Opec at a ministerial meeting in Vienna on November 30.
The UAE has backed efforts by Opec – agreed in Algiers in September – to hammer out a deal to limit output to rebalance the world oil market.
Adnoc said it “aims to stretch the margin of each refined barrel of oil”, and announced it would raise petrol production to 10.2 million tonnes per annum (mtpa) by 2022 with the addition of a new petrol and aromatics project, adding 4.2 mtpa of gasoline and 1.4 mtpa of aromatics.
Petrochemical production is to grow from 4.5 mtpa this year to 11.4 mtpa by 2025. The expansion will add polyolefin capacity and new petrochemical products coming from a world-scale mixed feed liquid cracker.
The plan also said the sharply rising output of sulphur from Al Hosn sour gas project, would create opportunities to develop a UAE fertiliser operation.
Adnoc will be “supporting the development of a local sulphur products industry, including enhancing the existing ammonia and urea industry, with a new generation of advanced fertilisers”, the statement said.
amcauley@thenational.ae
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Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
ARGYLLE
Director: Matthew Vaughn
Starring: Bryce Dallas Howard, Sam Rockwell, John Cena
Rating: 3/5
SCORES
Yorkshire Vikings 144-1 in 12.5 overs
(Tom Kohler 72 not out, Harry Broook 42 not out)
bt Hobart Hurricanes 140-7 in 20 overs
(Caleb Jewell 38, Sean Willis 35, Karl Carver 2-29, Josh Shaw 2-39)
Top 10 in the F1 drivers' standings
1. Sebastian Vettel, Ferrari 202 points
2. Lewis Hamilton, Mercedes-GP 188
3. Valtteri Bottas, Mercedes-GP 169
4. Daniel Ricciardo, Red Bull Racing 117
5. Kimi Raikkonen, Ferrari 116
6. Max Verstappen, Red Bull Racing 67
7. Sergio Perez, Force India 56
8. Esteban Ocon, Force India 45
9. Carlos Sainz Jr, Toro Rosso 35
10. Nico Hulkenberg, Renault 26
More from Neighbourhood Watch:
COMPANY PROFILE
Company name: Co Chocolat
Started: 2017
Founders: Iman and Luchie Suguitan
Based: Dubai, UAE
Industry: Food
Funding: $1 million-plus
Investors: Fahad bin Juma, self-funding, family and friends
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
The specs
Engine: 6.5-litre V12
Power: 725hp at 7,750rpm
Torque: 716Nm at 6,250rpm
Transmission: 8-speed dual-clutch auto
On sale: Q4 2023
Price: From Dh1,650,000
AndhaDhun
Director: Sriram Raghavan
Producer: Matchbox Pictures, Viacom18
Cast: Ayushmann Khurrana, Tabu, Radhika Apte, Anil Dhawan
Rating: 3.5/5
SPECS
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
match info
Union Berlin 0
Bayern Munich 1 (Lewandowski 40' pen, Pavard 80')
Man of the Match: Benjamin Pavard (Bayern Munich)
Top 10 most competitive economies
1. Singapore
2. Switzerland
3. Denmark
4. Ireland
5. Hong Kong
6. Sweden
7. UAE
8. Taiwan
9. Netherlands
10. Norway
SPECS
Engine: 2-litre direct injection turbo
Transmission: 7-speed automatic
Power: 261hp
Torque: 400Nm
Price: From Dh134,999
Tips for holiday homeowners
There are several factors for landlords to consider when preparing to establish a holiday home:
- Revenue potential of the unit: location, view and size
- Design: furnished or unfurnished. Is the design up to standard, while being catchy at the same time?
- Business model: will it be managed by a professional operator or directly by the owner, how often does the owner wants to use it for personal reasons?
- Quality of the operator: guest reviews, customer experience management, application of technology, average utilisation, scope of services rendered
Source: Adam Nowak, managing director of Ultimate Stay Vacation Homes Rental
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
The Beekeeper
Director: David Ayer
Starring: Jason Statham, Josh Hutcherson, Emmy Raver-Lampman, Minnie Driver, Jeremy Irons
Rating: 3/5
Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
THE HOLDOVERS
Director: Alexander Payne
Starring: Paul Giamatti, Da'Vine Joy Randolph, Dominic Sessa
Rating: 4.5/5
How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
Pakistanis at the ILT20
The new UAE league has been boosted this season by the arrival of five Pakistanis, who were not released to play last year.
Shaheen Afridi (Desert Vipers)
Set for at least four matches, having arrived from New Zealand where he captained Pakistan in a series loss.
Shadab Khan (Desert Vipers)
The leg-spin bowling allrounder missed the tour of New Zealand after injuring an ankle when stepping on a ball.
Azam Khan (Desert Vipers)
Powerhouse wicketkeeper played three games for Pakistan on tour in New Zealand. He was the first Pakistani recruited to the ILT20.
Mohammed Amir (Desert Vipers)
Has made himself unavailable for national duty, meaning he will be available for the entire ILT20 campaign.
Imad Wasim (Abu Dhabi Knight Riders)
The left-handed allrounder, 35, retired from international cricket in November and was subsequently recruited by the Knight Riders.
Dunki
Director: Rajkumar Hirani
Starring: Shah Rukh Khan, Taapsee Pannu, Vikram Kochhar and Anil Grover
Rating: 4/5
The Limehouse Golem
Director: Juan Carlos Medina
Cast: Olivia Cooke, Bill Nighy, Douglas Booth
Three stars
Women’s T20 World Cup Qualifier
UAE fixtures
25 April – Ireland v UAE*
27 April – UAE v Zimbabwe**
29 April – Netherlands v UAE*
3 May – UAE v Vanuatu*
5 May – Semi-finals
7 May – Final
UAE squad: Esha Oza (captain), Al Maseera Jahangir, Avanee Patel, Heena Hotchandani, Indhuja Nandakumar, Kavisha Kumari, Khushi Sharma, Lavanya Keny, Mehak Thakur, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Suraksha Kotte, Theertha Satish, Vaishnave Mahesh.
*Zayed Cricket Stadium
**Tolerance Oval
