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UAE oil giant will 'continue to deliver' returns for investors, executive says

  • "We're early in the run at ADNOC Distribution … I think from our perspective, there's no level of complacency, we need to continue to deliver," John Carey, deputy chief executive at ADNOC Distribution, told CNBC Wednesday.
  • ADNOC, which controls nearly all of the proven oil reserves in the United Arab Emirates, listed a stake in its fuel distribution unit at the end of last year.
  • It was thought to be the biggest listing on the Abu Dhabi stock exchange in the past decade

There is no evidence of complacency among ADNOC Distribution's senior executives, the firm's deputy chief executive told CNBC on Wednesday.

ADNOC, which controls nearly all of the proven oil reserves in the United Arab Emirates, listed a stake in its fuel distribution unit at the end of last year. It was thought to be the biggest listing on the Abu Dhabi stock exchange in the past decade.

"We're early in the run at ADNOC Distribution … I think from our perspective, there's no level of complacency, we need to continue to deliver," John Carey said.

"I think having spent the last couple of weeks talking across the U.S. and the U.K. to our investors, there is certainly a positivity and a desire to continue and grow their investments," he added.

The oil giant's initial public offering at the end of 2017 was part of a strategy by the UAE, as well as other Gulf nations, to privatize energy sector assets amid a subdued oil price environment.

Looking to Dubai's market

"Growth into Dubai has been a critical area … It is a market we have not been in and it's a very big market (and) a very high volume market. We have identified three really key areas and sites there, and we will open this year," Carey said.

When asked whether the strategy for ADNOC Chief Executive Sultan Ahmed Al Jaber would be to try to expand the firm's international exposure across the board, he replied: "I think certainly."

ADNOC produces 3.1 million barrels of oil per day and 9.6 billion cubic feet of raw gas each day, placing it among the largest energy producers in the world. The group has said it wants to increase the number of barrels per oil it produces per day to 3.5 million in 2018.

Clarification: This report has been updated to clarify Carey's comments on ADNOC versus his comments specific to its distribution unit.