Under the terms of the agreement, a new joint venture company will be established as a separate legal and operating entity
The Abu Dhabi National Oil Company (ADNOC) has formed a joint venture with Abu Dhabi-based Group 42 to build and commercialise AI products for the oil and gas sector.
Under the terms of the deal, a fresh company will be set up as a separate legal and operating entity.
The joint venture will allow ADNOC to leverage G42’s CPU and GPU-based computing clusters, data scientists, domain experts, software engineers, as it speeds up the delivery of its 2030 smart growth plan.
In November 2018, ADNOC had won regulatory approval for its 2019-2023 business plan and an investment of AED486bn ($132.33bn). Implementation of its new integrated gas strategy and plans are expected to boost its oil production capacity to 4 million barrels per day (mmbpd) by 2020-end and 5mmbpd by 2030.
The partnership will enable the Abu Dhabi-based artificial intelligence (AI), cloud and supercomputing company to have access to ADNOC’s petabytes of archival data.
G42 CEO Peng Xiao said: “We are proud to join forces with ADNOC to create this new Abu Dhabi based entity that will provide the world with best-in-class, AI-based technological solutions for the oil and gas industry.”
“This partnership will enable us to further develop the advanced AI tools required by ADNOC and other leading oil and gas companies to become more efficient, enhance their performance and empower their people, as they deliver the energy required for future economic growth.”
The JV is one of several digital transformation initiatives taken by ADNOC
The joint venture with G42 is one of many digital transformation initiatives taken by ADNOC, as it uses latest technology across its entire value chain to lessen the downtime of critical equipment.
The technologies that ADNOC is utilising are artificial intelligence, data analytics, machine learning and blockchain.
UAE Minister of State and ADNOC Group CEO Sultan Ahmed Al Jaber said: “As we prepare for the opportunities and challenges the 4th industrial age will present, this joint venture is a pro-active approach using an innovative partnership to create the oil and gas technology solutions of tomorrow.
“It reflects ADNOC’s commitment to deploying the power of advanced technology to maximize value from every molecule we produce and will strengthen Abu Dhabi and the UAE’s leading position at the cutting edge of AI and the global energy sector.”