The Abu Dhabi National Oil Company or ADNOC is the state-owned oil company of the United Arab Emirates (UAE). ADNOC divulged plans to invest $45 billion in expanding its Ruwais petrochemical complex in Abu Dhabi`s Al Dhafra region. The compound is aligned to become the largest integrated refinery and petrochemicals chamber in the world. Thereby, it also enriches the span of ADNOC`s derivative and petrochemical products.
As the face of the Abu Dhabi government, ADNOC explores, stores refines, distributes and develops petrochemical products. With the objective of innovation pertaining to optimise the value of Abu Dhabi`s resources. ADNOC’s vision is to bring in pioneering technologies and campaigns to escalate the supply to the energy market.
The below defines the sector of Oil and Gas market in Abu Dhabi.
- 92.2 billion barrels of proven oil reserves
- over 9.8 billion cubic feet raw gas produced each day
- 50 billion standard cubic feet of gas produced per week
- 922,000 barrels of condensate and crude processed per day
- 600,000 metric tons of high-quality base of oil generated per year
With so much potential, incorporating an oil and gas company in Abu Dhabi is a promising venture. Here is your guide on company incorporation in the Oil and Gas sector in Abu Dhabi.
How to Set up Oil and Gas Business in Abu Dhabi?
ADNOC has a block licensing strategy as it launches bidding for attractive licensing opportunities offered via research and development for producing oil and gas in Abu Dhabi. ADNOC announces six blocks- two for offshore utility and four for the onshore.
Three Crucial Steps for Your Company to Work Directly with ADNOC:
- Securing Supreme Petroleum Council approval
- Register as a vendor for ADNOC
- Get certified for ADNOC`s In Country Value scheme (ICV)
Approval of the Supreme Petroleum Council (SPC) is vital for the establishment of an oil and gas company in Abu Dhabi. SPC looks after the petroleum policy regulation and also functions as the member of the board of directors of ADNOC.
The Significant Steps in Setting Up an Oil and Gas Company in Abu Dhabi
- Check for trade names and authority to establish as the trademark via the chosen name
- Decide on the foremost activities for the proposed entity
- Check legal form of the entity
- The arrangement of office space
- Documentation formalities required for granting first stage approvals.
- Submit the documents with the authorities
- Obtain a trade license
- Open a bank account on the name of the company
- Register at Immigration and Labor Department
- Receive employment permits and visas for your staff
Where to Register your Oil and Gas Company in Abu Dhabi?
In general it is not possible for Abu Dhabi's free zone businesses to receive Supreme Petroleum Council approval. As such, it is necessary for companies within the oil and gas industry to be registered on-shore in Abu Dhabi, either as a Limited Liability Company (LLC) or Foreign Branch Office.
Oil and gas companies setting up onshore in Abu Dhabi are required to have a local sponsor.
1. Limited Liability Company (LLC): An LLC setup in Abu Dhabi requires a minimum of 51% shareholding by an Emirati local partner (sponsor). The Department of Economic development states that a foreign investor cannot own more than 49% of business in the UAE.
2. Foreign Branch Office: Although a foreign branch set up does require a local agent, but with 100% ownership of the foreign oil or gas company.
For further details, query or assistance required on establishing in the oil and gas sector do contact us. Our experts will provide you with the correct information regarding documentation and will guide you through from securing approvals to set up your oil and gas company in Abu Dhabi.