Oil & Gas

ADNOC's recent expansion in Africa highlights the company's and the UAE's strategic commitment to advancing the energy sector and ensuring a consistent flow of resources to meet global demand. This expansion has involved a surge in acquisitions, mergers, and stake-sharing deals across fossil fuels, liquefied gas, and clean and renewable energy sources. Africa, with its vast resources and potential, has become a key investment destination for ADNOC, despite challenges such as insufficient funding and technical expertise.

The company's investments in Africa have taken both direct and indirect forms, with notable developments including acquiring a minority stake in Austria's OMV in 2024, which enhances ADNOC's presence in Libyan and Tunisian oil fields. Additionally, ADNOC has collaborated with Italy's Eni and France's TotalEnergies to explore the NC-7 gas field in Libya's Ghadames Basin. The company's African portfolio also includes a 10% stake in Mozambique's Rovuma project, developed by ExxonMobil and Eni, as well as expanded investments in Egypt's oil and gas fields through a partnership with BP.

ADNOC's African ventures are strategically significant, positioning the UAE as a major player in the global energy market. Domestically, these investments aim to bridge the expected hydrocarbon production gap between 2030 and 2050 as the UAE transitions to clean energy. By securing resources in Africa, the UAE can also address the electricity shortage affecting millions of Africans and create new channels to meet European energy demand, particularly amid geopolitical tensions in the Red Sea.

Moreover, ADNOC's investments in Africa are supported by logistical and military backing, which enhances the UAE's influence in the region. This includes constructing ports in Somalia and the Democratic Republic of Congo and establishing military bases in the Horn of Africa. These efforts ensure the smooth flow of resources and reflect the UAE's broader strategy of diversifying its energy sources and safeguarding its interests in a rapidly changing global landscape.