ADNOC joins hands with compatriot tech company to step up energy-focused AI game

Presight, UAE’s AI-powered big-data technology company, is set to acquire a majority stake in AIQ, a joint venture between Abu Dhabi National Oil Company (ADNOC) and compatriot IT company G42 in a bid to lend a helping hand in bringing forth AI-powered solutions to the energy sector.

Under the agreement, Presight will acquire a 51% stake in AIQ, with ADNOC retaining a 49% interest in the company whose value is estimated at over $1.4 billion. The UAE giant previously held a 60% stake while 40% was held by G42.

Peng Xiao, Group CEO of G42, noted: “This transaction underscores once again G42’s ability to grow organizations poised for technological leadership in their respective domains and create shareholder value. AI can play a pivotal role in accelerating the energy transition, and Presight’s acquisition of AIQ, with plans to serve ADNOC and the wider energy sector, further reinforces our commitment to the wellbeing of our planet and its inhabitants.”

As part of the transaction, which is subject to Presight’s shareholder and regulatory approval, ADNOC will receive 4% in Presight shares from G42 in exchange for 11% of its shareholding in AIQ. Launched in 2020 with G42, AIQ provides AI solutions for the energy sector, with over 20 AI applications developed and 16 patents filed. Upon completion of the transaction, the firm will continue as a standalone company.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, remarked: “The UAE has embraced AI to drive productivity, economic growth and social advancement, with ADNOC laser-focused to become the world’s most AI-enabled energy company, delivering smarter, cleaner and safer energy to the world.“

The transaction is meant to combine AIQ’s AI energy solutions with Presight’s cross-sector big data analytics, product development, and international market access. As more and more companies are jumping on the AI bandwagon to boost efficiency, the goal is to deliver greater value not just for all the partners involved, but also the UAE.

“Our partnership with Presight will further AIQ’s capabilities, advance ADNOC’s ambition to pioneer technology and AI to build the energy system of tomorrow, with data integration from the control room to the board room. Through this collaboration, I am confident that AIQ will become the energy industry’s leading AI company, delivering enhanced value to Abu Dhabi and the UAE,” added Al Jaber.

While Al Jaber will assume the role of AIQ’s Chairman, Mansoor Al Mansoori, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi’s Department of Health, and Chairman of Presight, will become the Vice-Chairman.

Al Mansoori commented: “Since its record-setting debut on the Abu Dhabi Securities Exchange (ADX) in 2023, Presight has emerged as an international powerhouse, showcasing robust growth, sustainable profitability, and an ability to magnetize top-tier talent and global clientele. Today’s transaction will unlock both Presight and AIQ’s immense growth potential, positioning the two organizations for unprecedented local and global success.”

The energy major reported generating $500 million (AED 1.84 billion) in value during 2023 by integrating more than 30 AI tools across the value chain, from field operations to smarter and quicker corporate decision-making. According to ADNOC, these applications reduced up to one million tons of carbon dioxide (CO2) emissions in 2022–2023 – the equivalent of removing around 200,000 gasoline-powered cars from the road.

In addition to this technology, the oil and gas heavyweight recently employed unmanned aerial vehicles (UAVs), also known as drones, to slash its emission footprint from onshore and offshore operations. Furthermore, it recently secured the second long-term LNG deal for its Ruwais liquefied natural gas (LNG) project, set to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, after the first one was inked late last year