(CTN NEWS) – DUBAI – In the most recent initial public offering by a state-run energy company in the Middle East, the gas processing division of the Abu Dhabi National Oil Company said on Friday that it intends to sell 4% of its shares to local investors.
The move comes months before the United Arab Emirates is scheduled to host this year’s U.N. climate negotiations. It follows a comparable IPO by the Saudi oil firm Aramco in 2019 that garnered around $30 billion.
Climate change campaigners were outraged when the UAE, which is home to Abu Dhabi and Dubai, chose Sultan al-Jaber, the CEO of ADNOC, who also controls renewable energy projects, to preside over COP28.
The UAE’s natural gas reserves are the sixth largest in the world, and ADNOC has access to 95% of them. More than 60% of the domestic market receives gas from it, and it exports to more than 20 nations.
Compared to the year 2021, the National Oil Company’s net income increased to $4.2 billion in the first ten months of 2022 from $3.6 billion.
Beginning on February 23, it intends to list more than 3 billion shares on the Abu Dhabi Stock Exchange for local investors to purchase.
According to a news statement from ADNOC‘s acting group CFO Khaled Al Zaabi, “Natural gas is fundamental to the energy shift.”
“ADNOC Gas is well-positioned to responsibly utilize our substantial natural gas resources while driving efficiency, generating value, and reliably supplying this essential fuel to satisfy the world’s expanding energy needs,” says the company.
Almost 10 billion standard cubic feet of gas can be processed by ADNOC Gas daily, and 29 million tonnes of liquid may be processed annually. In February 2022, ADNOC declared the finding of up to 2 trillion standard cubic feet of gas in an offshore location.
The UAE has quickly evolved into a high-tech global commercial hub with futuristic cities and one of the busiest airports in the world, thanks to oil and gas.
Experts contend that as the world’s reliance on renewable energy grows, the Emirates is attempting to maximize its earnings.
The Emirates claims to have spent more than $50 billion on renewable energy projects in 70 different nations and has plans to spend an additional $50 billion over the next ten years.
It has also promised to achieve carbon neutrality by 2050, though it’s not obvious how it would do so.
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