The Abu Dhabi National Oil Company (ADNOC) is embarking on an ambitious transformation journey, aiming to reshape itself into an international oil major. This strategy involves expanding its global presence, seeking new revenue streams, and focusing on renewable energy, gas, petrochemicals, and liquefied natural gas (LNG). The move aligns with the UAE's broader vision to leverage its hydrocarbon wealth while reducing its dependence on fossil fuels.

ADNOC is actively exploring opportunities in renewables, with a particular focus on LNG. The company is reportedly eyeing LNG assets in Africa and considering acquiring Galp's 10% stake in a multi-billion-dollar natural gas project located in the Rovuma basin off the coast of Mozambique. While specific details remain undisclosed, ADNOC's recent activities suggest a significant shift towards diversification.

In addition to its interest in LNG, ADNOC has been involved in several high-profile deals this year, including the purchase of a stake in an Azerbaijani gas field, joint efforts with BP to acquire a share in Israeli gas producer NewMed Energy, discussions regarding a takeover of German plastics manufacturer Covestro, and plans to establish a $20 billion chemicals venture with Austria's OMV.

Furthermore, ADNOC is enhancing its presence in energy trading, possibly by expanding its trading offices to Geneva and London. The company already operates two trading arms, ADNOC Trading (crude oil-focused) and ADNOC Global Trading (joint venture with Eni and OMV, specializing in refined products).

The transformation at ADNOC has gained momentum following a board meeting in November, which brought forward the target to increase production capacity to 5 million barrels per day by 2027. The company's five-year business plan and $150 billion capital spending were also approved, signifying a departure from the traditional state oil firm model towards resembling an international oil company (IOC).

ADNOC's evolution mirrors similar transitions at state-owned energy giants in Saudi Arabia and Qatar, as these national oil companies (NOCs) expedite efforts to monetize their reserves and expand internationally in response to the changing energy landscape. To support these changes, ADNOC has hired more than 3,370 new employees this year, including senior managers from global energy firms, trading houses, banks, and consultancies.

Despite these transformations, analysts acknowledge that ADNOC, like its regional counterparts, remains subject to government control and must align with national objectives. Striking a balance between maximizing oil revenues for economic transition and adopting climate-friendly practices poses a significant challenge for these NOCs.

Critics argue that hosting the COP28 climate summit while holding leadership positions in fossil fuel companies may limit the ambition of global climate efforts. However, proponents argue that individuals like ADNOC's CEO, Sultan al-Jaber, can bridge the gap in climate discussions and accelerate the transition to renewable energy. ADNOC has pledged to invest $15 billion in climate-friendly projects by 2027, and al-Jaber also leads Abu Dhabi's Masdar, aiming to install 100 gigawatts of renewable energy by 2030, with plans to double that figure eventually.