The United Arab Emirates said its decision to leave OPEC will give it more freedom to ramp up investment and expand its oil sector, as it accelerates a broader economic strategy.
“It serves our national interests and long-term strategic objectives, aligns with our industrial, economic, and developmental ambitions, and gives us greater ability to accelerate investment, expand, and create value,” Sultan Al Jaber, chief executive of Abu Dhabi National Oil Co., said in a speech.
Adnoc on Sunday outlined plans to fast-track growth, including 200 billion dirhams ($55 billion) in project awards under its wider $150 billion investment program. The announcement coincided with an OPEC meeting where members agreed to a modest increase in June output targets.
Tensions over production limits had long complicated the UAE’s role in OPEC. Officials have said recent disruptions tied to the Middle East conflict created the right moment to step away.
The UAE estimates its current production capacity at 4.85 million barrels per day and aims to raise that to 5 million by 2027.
Leaving OPEC “is part of a broader effort to reshape our economy and industrial base through a vision that connects energy, technology, and industry, aligning our resources with national priorities to build a stronger, more resilient economy,” Al Jaber said.
Source: seekingalpha