ADNOC: Abu Dhabi's State-Owned Energy Holding Company
The Abu Dhabi National Oil Company (ADNOC) is the primary state-owned holding company and parent entity for Abu Dhabi's integrated energy operations. Founded in 1971, ADNOC is wholly owned by the Abu Dhabi Government and serves as the principal vehicle for managing, producing, and preserving the Emirate's hydrocarbon resources and energy investments.
Corporate Structure and Scale
ADNOC operates as a diversified energy group with a complex corporate structure comprising at least 15 to 18 subsidiary companies and joint ventures operating across the entire hydrocarbon value chain. The company employs approximately 30,000 people and maintains strategic operations spanning exploration and production, storage, refining, distribution, and petrochemical product development. The Abu Dhabi Government retains a 90% ownership stake in the parent company, with the remaining 10% representing strategic minority interests.
Business Operations by Segment
Upstream Operations include several dedicated subsidiaries focused on oil and gas exploration and production:
ADNOC Onshore operates Abu Dhabi's legacy onshore fields dating back to 1939, managing 11 onshore fields and two world-class export terminals (Jebel Dhanna and Fujairah). The company holds a 60% stake with international partners BP, Total, China National Petroleum Corporation (CNPC), Inpex/JODCO, China ZhenHua Oil, and GS Energy holding the remaining 40%.
ADNOC Offshore is the largest offshore oil and gas producer in the UAE, accounting for approximately half of Abu Dhabi's total oil production capacity across nine established fields and over 400 offshore structures. The company was formed through consolidation of Abu Dhabi Marine Area Operating Company (ADMA-OPCO) and Zakum Development Company (ZADCO).
ADNOC Drilling is the largest drilling company in the Middle East by rig fleet size and was publicly listed on the Abu Dhabi Exchange (ADX) in October 2021. ADNOC retains a 95% equity stake following Baker Hughes' acquisition of a 5% stake in 2018.
Specialized upstream ventures include Al Yasat Petroleum (60% ADNOC, 40% CNPC joint venture established in 2014), Al Dhafra Petroleum (60% ADNOC, 40% held by Korean National Oil Corporation and GS Energy), and ADNOC Sour Gas (60% ADNOC, 40% Occidental Petroleum), which operates the Shah Gas Field and represents the world's largest single-site granulated sulfur producer.
Midstream and Processing Operations:
ADNOC Gas Processing (formerly GASCO) is Abu Dhabi's largest gas processing complex, established in 1975, with ADNOC holding a 68% stake. Shell Abu Dhabi, Total SA, and Partex hold the remaining 32%.
ADNOC LNG processes and distributes liquefied petroleum gas and liquified natural gas at Das Island for export primarily to East Asia, particularly Japan. ADNOC is the majority shareholder with minority stakes held by Mitsui, BP, and Total.
Downstream and Refining Operations:
ADNOC Refining operates the Ruwais and Abu Dhabi (Umm Al Nar) refineries and is structured as a joint venture with ADNOC holding 65%, Eni holding 20%, and OMV holding 15%.
ADNOC Industrial Gas, a joint venture with Germany's Linde Group established in 2007, manufactures industrial gases used in oil, gas, and petrochemical industries, with ADNOC holding 51% and Linde holding 49%.
Marketing and Distribution:
ADNOC Logistics & Services was formed through the merger of ESNAAD, IRSHAD, and ADNATCO, serving as a 100% ADNOC subsidiary with approximately 4,000 employees.
ADNOC Distribution, partially publicly listed on the ADX with a 20% free float following a $1 billion block placement in September 2020, operates hundreds of service stations across the UAE, aviation fuel services, bunkering services, and lubricant retail operations, making it the largest fuel and convenience retailer in the UAE as of August 2024.
Strategic International Investments
ADNOC maintains significant international equity positions through various subsidiaries and partnerships. The company holds a 24.9% stake in Austrian petrochemical company OMV and owns significant interests in international refining and chemical ventures, including stakes in India's planned Ratnagiri Refinery and Petrochemicals Ltd (25% stake) and the Borouge petrochemical joint venture with Borealis and other international partners.
Production and Global Standing
ADNOC operates with current oil production capacity exceeding 4 million barrels per day (bpd), with expansion plans targeting 5 million bpd by 2030. The company accounts for approximately 12% of global oil and gas production and ranks as the 11th to 12th largest oil producer globally. The company has demonstrated strong financial performance, with net profit increasing 33% in 2022 to $802 million USD.
Transformation and Strategic Repositioning
ADNOC has undergone significant organizational restructuring, most notably with the launch of XRG in November 2024 as a separate investment vehicle to consolidate the company's international energy and chemicals investments. This strategic separation allows ADNOC to maintain focused domestic operations while positioning XRG as an autonomous $80+ billion investment platform for global growth initiatives.
