Abu Dhabi Plans to Spend $122 Billion on Oil In Next Five Years

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Abu Dhabi will invest 448 billion dirhams ($122 billion) in oil and natural gas over the next five years as it seeks to raise production capacity, even while OPEC restricts its output.

The Gulf emirate’s top body for energy policy, the Supreme Petroleum Council, approved the budget for Abu Dhabi National Oil Co., state-run news agency WAM reported on Sunday.

The SPC gave approval to Adnoc to develop hydrogen as a low-carbon source of energy and to award contracts for companies to explore onshore and offshore oil and gas blocks.

Abu Dhabi is the capital of the United Arab Emirates and holds almost all its oil. The emirate’s officials last week privately floated the idea that the UAE could leave the Organization of Petroleum Exporting Countries, a move which would be highly unusual and probably destabilize oil markets. Energy Minister Suhail Al-Mazrouei later said the UAE “has always been a committed member,” though he didn’t address the country’s future in the cartel.

READ: UAE Tries to Lower Temperature in Dispute With OPEC+ Allies

Abu Dhabi plans to raise daily oil-production capacity to 5 million barrels by 2030 from about 4 million barrels. The UAE’s output is limited by OPEC to roughly 2.6 million barrels a day until the end of the year.

OPEC and allied producers such as Russia are set to meet next week to decide whether to increase output in January as part of a plan to ease cuts started in May at the height of the coronavirus pandemic. They may be forced to delay the hike as the virus continues to sap demand for energy and weigh on oil prices.