UAE President and Ruler of Abu Dhabi, Sheikh Khalifa bin Zayed al-Nahyan, has appointed a new director general for the Abu Dhabi National Oil Company (Adnoc).
Abdullah Nasser al-Suwaidi was appointed to the post, while Adnoc chief executive officer Yousef Omair bin Yousef has lost his place in the Supreme Petroleum Council (SPC), Abu Dhabi’s highest decision-making body on energy.
Al-Suwaidi, who is an SPC member, has been appointed in advance of a new round of negotiations over concessions. Analysts say that Sheikh Khalifa appointed Al-Suwaidi to ensure Adnoc secures the best possible deal from the negotiations.
Adnoc will also have to implement a new strategy over the distribution of petrol throughout the UAE
ExxonMobil and Shell concession in Adnoc’s onshore subsidiary Abu Dhabi Company for Onshore Oil Operations (Adco) runs out in 2014. BP’s, Total’s and Japan Oil Development Company’s concessions in Abu Dhabi’s offshore fields expire later this decade.
Adnoc will also have to implement a new strategy over the distribution of petrol throughout the UAE, after Dubai’s Emirates National Oil Company (Enoc) stopped supplying fuel to its outlets in the northern emirates.
Enoc and its rival Emarat have been making losses over fuel subsidies and Enoc stopped diverting petrol out of Dubai at a time when rising crude prices increased the disparity between wholesale and retail prices. In response, Sharjah’s government has closed down stations of Enoc and its subsidiary Eppco.
Adnoc has been ordered to fill the gap by supplying additional fuel to the northern emirates and to expand its distribution network.