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ADNOC manages offshore output and onshore operations continue

Abu Dhabi National Oil Company announced on Saturday that it was 'actively managing offshore production levels to meet storage requirements amidst the U.S. -Isaeli war on Iran', and its onshore operations are continuing.

ADNOC stated in a press release that "this approach will preserve operational flexibility and enable the company resume normal operations with no prolonged delay."

Eight-day war has now blocked shipping through the Strait of Hormuz - the vital waterway that supplies 20% of the world's oil and LNG. Analysts predicted that the UAE and Saudi Arabia would soon be forced to reduce production as their oil reserves fill up.

ADNOC stated that its operations were 'continuing' and that it was using export capacity which?bypasses strait, as well as international storage facilities to guarantee supply continuity to global market.

The UAE can bypass this strait by using the Abu Dhabi Crude Oil Pipeline (also known as the Habshan Fujairah Pipeline). The pipeline transports oil directly from Abu Dhabi to Fujairah, on the Gulf of Oman. It has a daily capacity of between 1.5 million and 1.8 million barrels.

"Business units ?are assessing the situation on a product-by-product and transaction-by-transaction basis, considering the ongoing disruption that is ?affecting shipping through the Strait of Hormuz," it ?said.

ADNOC said it has activated protocols that are well-established and works closely with authorities to safeguard its people, assets and operations. Kuwait Petroleum Corporation cut oil production on Saturday, declaring force majeure. This was in addition to the earlier reductions of oil and gas from Iraq and Qatar. Yousef SABA, Timothy Heritage and Jan Harvey edited the report.

(source: Reuters)