The Abu Dhabi National Oil Company1.0 IntroductionThe Abu Dhabi National Oil Company, which is well known by its abbreviations ADNOC, was established in the year 1971. ADNOC 2011 news indicates that the Company, which is owned by the government of Abu Dhabi, has access to over 90% of the national oil and gas reserves. According to (Luciani 24), ADNOC is one of the world’s ten biggest oil companies. The headquarters of ADNOC are located in the city of Abu Dhabi. ADNOC is a latecomer in the Middle East oil industry and it only began its production the year 1962.
The main Company is divided into 14 directorates, which are in charge of various industry areas within the main company. As 2011 report points out, the company’s management is under and hence answerable to the United Arab Emirate’s Supreme Petroleum Council, which steer the Emirate’s petroleum guiding principles. Historically, the Company was mainly dealing with petroleum sector only, however, according to ADNOC Report 2011, ADNOC has grown steadily since its establishment and it has opened several subsidiaries in other countries.
According to Shihab, oil and gas production are the main economic activities in the UAE earning the nation huge income. This has made it possible for all oil companies to grow steadily, ADNOC being among them. As per the year 2000, the company was producing about 2.75 million barrels per day. Due to its constant growth rate, currently, the company is producing approximately over 20 million barrels within a day. Initially, oil and gas exploration in the UAE was ran mainly by European Companies. However, in 1973, ADNOC was put in charge of marketing oil products in Abu Dhabi.
Since then, ADNOC has broadened its activities not only in the UAE but in many other countries in the world. 2.0 ADNOC Nature of BusinessAbu Dhabi National Oil Company (ADNOC) is engaged in the exploration and production of oil, processing of oil and natural gas, processing and production of petrochemicals and maritime transportation and distribution of its refined products. ADNOC’s main business operation is to explore, produce and market natural resources such as natural gas, petroleum and oil, which the modern society largely depend on.
The state-owned Company operates in all stages of oil manufacturing. The Company runs its operations under the guidance of its vision which aims to see the Company become the leading supplier of quality and environmental-friendly oil and petroleum products. The Company has a multifaceted organizational structure with links with various Western oil Companies. Abu Dhabi is the largest of all the seven states that form United Arab Emirates (UAE) and it the leading states in the UAE oil industry (Kumar, 49). Currently, ADNOC operates two refineries, three companies specialized in oil production one of them being The Abu Dhabi Marine Operating Co.
well known as (Adma-Opco), which mainly deals with offshore search and production. The Company also operates the Abu Dhabi Gas Industries Ltd also known as (GASCO), a company specialized in the production of natural gas. Apart from these companies, ADNOC runs several other maritime transport companies and industries specialized in the production of petrochemicals. ADNOC also provides gas, electricity and desalinized water for home use. The gas is distributed to the local communities by its subsidiary, Adnoc-Fod and it operates over 200 gas stations throughout UAE.
Currently ADNOC has diversified its business activities so as to improve its competitive position in the oil markets. Just as the company’s 2011 news states, ADNOC has managed to remain one of the leading oil companies in the world due to its diversified business activities.