ABU DHABI - The ADNOC Structure.

After restructuring in late 1998 and early 1999, ADNOC has eight directorates functioning as autonomous divisions. Of these, five operating directorates were created in October 1998, with each in charge of a sector and subsidiary companies. Now ADNOC's structure is as follows:

1. The

E&P Directorate is in charge of the upstream sector, including ADNOC's exploration work and the E&P joint ventures: onshore ADCO (the largest oil producer), offshore ADMA-OPCO (the third largest oil producer), ZADCO (the second oil producer), and the smaller producers offshore. (See their profiles in Gas Market Trends of this week).

2. The Gas Processing Directorate is in charge of Abu Dhabi Gas Industries Co. (Gasco) and of the LNG-exporting joint venture ADGAS. Gasco is in charge of the gas processing plants and gas pipelines. On April 23, 2001, ADNOC's fully-owned Abu Dhabi Gas Processing Co. (Atheer), set up in early 1999, was merged into Gasco in order to streamline ADNOC's onshore gas operations. Now Gasco is owned 68% by ADN0C, 15% by Shell, 15% by Total and 2% by Partex. Gasco handles all of ADNOC's gas projects.

3. The crude oil/products Marketing and Refining Directorate is in charge of the Abu Dhabi Refining Co. (Takreer) and the autonomous Abu Dhabi National Oil Co. for Distribution (ADNOC-FOD). ADNOC Marketing & Refining is responsible for selling to the international markets. ADNOC's equity share of crude and condensate production, natural gas liquids and sulphur, together with the refined oil products processed by Takreer. It also sells oil products to ADNOC-FOD for the domestic market and the northern emirates (see Downstream Trends of this week). It co-ordinates the activities of Abu Dhabi National Tanker Co. (ADNATCO) and the National Gas Shipping Co. (NGSCO) all of which are wholly-owned subsidiaries of ADNOC. Murban is exported from Jebel Dhanna. The offshore lower Zakum and UmmShaif crudes are exported from Das Island. Offshore Upper Zakum crude is exported from Zirku Island.

4. The Chemicals and Petrochemical Directorate is in charge of the Borouge olefins venture (60% ADNOC/40% Borealis) and the fertilisers producer Fertil, which are both expanding (see Downstream Trends).

5. The Services Directorate is in charge of National Drilling Co. (NDC), Abu Dhabi Drilling Chemicals and Products (ADDCAP), Abu Dhabi Petroleum Ports Operating Co. (ADPPOC), and National Marine Service Co. (NMS). National Petroleum Construction Co. (NPCC), a highly successful contractor 30% owned by the Athens-based Lebanese firm CCC, has been transferred to General Holding Corp. (GHC) of the Economics Department (local ministry) and it is being restructured before the state's 70% stake is privatised. A planned initial public offering (IPO) in NPCC is to take place this year. A new board of directors has been appointed for NPCC, chaired by Nasser Bin Ahmad Al-Suwaidi (see who's who in DT No. 4).

6. The Marine Transportation Directorate is in charge of Abu Dhabi National Tanker Co. (ADNATCO) and National Gas Shipping Co. (NGSCO).

7.The Directorate of Finance; and, 8. The Directorate of Human Resources.

Hill International of the US was in August 2002 appointed as construction manager and supervisor for four ADNOC projects: (1) a residential complex at the gas processing centre of Habshan, which is being built; (2) housing facilities at Ruwais; (3) a jetty at Ruwais; (4) an ADNOC Petroleum Institute, a $70-82m petroleum engineering college built at Khalifa B City to be managed by the Colorado School of Mines of the US and completed in 2004.