Abu Dhabi’s state oil company harnesses AI, adds $500 million in net value in 2023

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023.

The state oil giant disclosed that it had successfully integrated over 30 AI tools across various operations, spanning from field activities to corporate decision-making processes, with plans for broader adoption of AI technology.

ADNOC highlighted the role of AI in revolutionising operational efficiency, citing a program utilising AI for remote monitoring of operational equipment, which reduced unexpected shutdowns and enhanced overall efficiency.

Moreover, AI technology has been instrumental in resource mapping, supporting drilling and production activities, and facilitating reservoir management, contributing to increased production capacity and the delivery of lower carbon-intensity energy solutions.

Sophie Hildebrand, ADNOC's Chief Technology Officer, highlighted the transformative impact of AI initiatives, emphasising the enhancements in automation and process optimisation across various facets of the company's operations.

Hildebrand said that there are tangible benefits derived from AI implementation, including improvements in capital expenditure, operational expenditure, working capital management, and production efficiency.

"The ability for us to do more and more is growing as the technology grows," Reuters quoted Hildebrand as saying.

While declining to provide specific figures, she anticipated further growth in the value generated by AI initiatives in the future.

ADNOC's AI initiatives are strengthened by tools developed through its joint venture with G42, known as AIQ.

Notable AIQ tools utilised by ADNOC include SMARTi, designed for hazard detection in industrial environments, and Robowell, facilitating remote equipment operation and flow valve control to enhance safety, reduce costs, and optimise production capacity.

The partnership between ADNOC and G42 highlights the strategic collaboration between industry leaders and technology innovators in driving forward AI integration within the oil and gas sector.

G42, a key player in the AI sector, is part of a business conglomerate associated with Sheikh Tahnoun bin Zayed al-Nahyan, the UAE's national security adviser, and brother of President Sheikh Mohammed bin Zayed al-Nahyan.

(With inputs from Reuters)