UAE oil chief says OPEC exit boosts ability to speed up investment

The United Arab Emirates’ surprise exit from Opec gives it greater ability to accelerate investment and expand, the head of the country’s state-run oil company said.  “It serves our national interests and long-term strategic objectives, aligns with our industrial, economic, and developmental ambitions, and gives us greater ability to accelerate investment, expand, and create value,” Sultan Al Jaber, chief executive officer of Abu Dhabi National Oil Co (Adnoc) said in a speech. 

 

Adnoc touted its plans on Sunday, saying it’s planning to accelerate a growth push with 200 billion dirhams ($55 billion) in oil-project awards as part of an already-announced $150 billion program. 

 

 

The latest statement came the same day as a meeting of the Organization of Petroleum Exporting Countries, which agreed on a modest and symbolic increase in their June production quota levels. Opec’s control over production levels was a sticking point in the UAE’s participation in the group going back years. 

 

UAE Energy Minister Suhail Al Mazrouei has said that the disruption caused by the war in the West Asia cre- ated an opportune time for country’s decision to quit the group. Adnoc has put UAE’s oil production capacity at 4.85 million barrels a day, which is higher than assessments by some other agencies. 

 

Any exit from Opec as a “negative or vengeful reaction toward members is not constructive,” Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said on Monday, commenting on the UAE’s decision to leave the oil producers’ group. Baghaei added Iran would retain its commitments within Opec and blamed the UAE for demonstrat- ing “inappropirate behaviour” in assisting Israel and the US during the war against it.