Adnoc planning to reduce operating costs by 25%

Affirming that world oil price fluctuations will not affect its long-term project development policy, Abu Dhabi National Oil Company (Adnoc) said today that it was working to cut operating costs of its projects by 25 percent.

"Our policy for implementing long-term projects is not impacted by oil price fluctuations," Ali Al Shamsi, Adnoc's strategy and co-ordination director, said on the sidelines of a news conference ahead of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), which gets underway next Monday in Abu Dhabi.

"We are planning to slash operating costs by 25 percent without having an effect on operations," he said, and added that cost reduction would not touch maintenance and safety of oil and gas fields and facilities, which are a red line.

In a reply to a question by Wam about Adnoc's ability to continue undertaking projects in light of low oil prices, he said they would go ahead in carrying out strategic projects it has already started benefitting from current oil market developments to get best project quotations.

He added that Adnoc had over the last four years implemented many projects to boost output capacity and the focus today is on development of new offshore gas fields to meet the growing demand.

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