Oil Daily | ADNOC Drilling Secures $1B for Growth; BPCL Invests $11B in Petrochemicals Amid Demand Surge

【Company News】

ADNOC Drilling Company, the drilling arm of Abu Dhabi's national oil company, plans to borrow $1 billion to refinance expiring debt, as part of its growth strategy. Listed in 2021, ADNOC Drilling aims to expand its market presence and has secured domestic contracts to boost UAE oil production capacity. The company is considering acquisitions, including two drilling technology firms valued at approximately $700 million. Their joint venture, Enersol, acquired a 95% stake in Deep Well Services to support UAE's energy resource development.

BPCL plans a $11 billion investment in a new refining and petrochemical complex in Andhra Pradesh to expand its petrochemicals production, aiming to increase its portfolio's petrochemicals percentage. BPCL and other Indian refiners strive to boost crude processing to meet growing demand. U.S. refiners, like Valero and Marathon, saw profits in renewable diesel, highlighting a shift towards biofuels.

【Oil-Producing Countries Dynamics】

India, with a significant trade surplus with the U.S., plans to increase American oil and LNG purchases to reduce the surplus and avoid potential tariffs. Indian buyers have shown interest in more U.S. LNG, especially after President Trump lifted the pause on permits for new LNG export projects. The shift comes amid sanctions on Russian oil, prompting India to reconfigure its supply chain.

【Industry News】

Refiners are increasing the production of cleaner fuels and petrochemicals, responding to the demand shift from conventional fuels to renewable feedstocks. Johnson Matthey is focusing on alternative feedstocks and opened an engineering center in India for sustainable technologies. BPCL's new refinery aims to significantly boost petrochemicals production to meet increasing demand in India.

China has started an ultradeep drilling campaign in the Taklimakan Desert to access oil and gas resources at depths of up to 8,735 meters. This initiative aligns with China's broader strategy to enhance domestic energy security by unlocking deep underground resources. Key projects are underway, including the deepest onshore well in Asia, with further advancements in ultra-deep drilling technology.

【Global Oil Supply and Demand】

India's petrochemical demand remains strong, despite a global slowdown, with significant investment anticipated to meet rising demand. The country plans to increase petrochemical production, supported by investments from major oil firms. The sector is expected to grow as India's middle class expands, driving demand for petrochemical products.