Abu Dhabi National Oil Company’s Change Initiative


The organizational efforts targeted towards change are one of the most central features of successful operational strategies. However, when it comes to the change management, the paradox is inevitable. The paradox is experienced at different levels: teamwork, individual, organizational, inter-organizational, and institutional. Thus, when dealing with changes in a large organization, the management should be ready to face interconnected paradoxes (Stoltzfus, Stohl & Seibold 2011, p. 350).

About ADNOC

Abu Dhabi National Oil Company (ADNOC) is one of the most powerful oil companies on the globe. It is a state-owned enterprise that fully controls the reserves of oil and gas in the Abu Dhabi region. Over the past decade, the company has earned a reputation as being a national company that both satisfies the needs and fulfills the responsibilities in the private and public sectors. Since 1971 when the company was completely nationalized, it has grown at astounding rates, putting significant investments across the entire sector. Moreover, the company has eleven subsidiary companies that operate across the industry (Baxter 2009, p. 3).

In recent years, ADNOC has made some achievements related to the growth of the gas fields for meeting the demands from the gas industry. In the year 2009, the company established the ‘ADNOC Sustainability Performance Initiative’ targeted at managing the balance between the needs of the society and the resources of the planet (About ADNOC n.d., para. 4). Moreover, the company aims at developing the human resources through the introduction of educational programs, training and the employment programs targeted to UAE nationals (Abu Dhabi National Oil Company (ADNOC) 2015, para. 2).

Cooperation

The company cooperates with ExxonMobil Abu Dhabi Offshore Petroleum Company Limited (EMADOPLC) and Japan Oil Development Company (JODCO) through joint venture agreements. The structure of the cooperation is presented in Figure 1:

Joint Venture Agreements.
Figure 1. Joint Venture Agreements (ADNOC Joint Venture Agreements).

When it comes to the changes that occurred in the company, the ADNOC human resources department has merged with the Administration Directorates in order to align the company’s management with the vision of the CEO department’s visions. Moreover, the company has started a membership in a joint venture for creating a new company, the Abu Dhabi Gas Development Company Ltd. (ADNOC sustainability report 2009, p. 4). The organizational changes cause the rise of three interdependent factors: stakeholder interest, stakeholder inclusion, and emergent stakeholder collective decision-making (Stoltzfus, Stohl & Seibold 2011, p. 349).

ADNOC Stakeholders

ADNOC defines stakeholders as individuals that can be affected by the company as well as its activities, and whose actions and activities can affect ADNOC and the Group Companies for a successful implementation of company’s strategies for achieving the set objectives. There four levels of stakeholders engaged in the company’s activities: the Directorate Management, the Group Company Management, the specialists on sustainability as well as general employees of the company (ADNOC sustainability report 2009, p. 8). The main issues of concern for stakeholders comprise three areas including environmental pollution prevention, the rational use of water as well as adequate consumption of natural resources. These issues have always been relevant to the company’s performance.

Changes in Management

According to the Bloomberg Business article by Daya (2011), “Abdullah Nasser Al-Suwaidi, the former deputy chief executive of ADNOC was also named the state-owned company’s director general” (para. 1). The change in management was made for developing and supporting strong relations between the company and the Abu Dhabi crown prince. Because the crown prince has an interest in getting the best deals for Abu Dhabi, the company is looking for various ways for bringing the oil concessions and new partners forward.

The organizational change management underlines the fact of “managing change invariably requires balancing paradoxes” (Saboohi & Sushil 2011, p. 201). Various paradoxes that occur during the changes should be viewed as solutions for achieving better change outcomes. A significant approach linked to the managing change and continuity concurrently is the most popular. However, despite the growing correlation between the theories of change on the need to balance between continuity and change, there is an array of validated models required for managing change in a company (Saboohi & Sushil 2011, p. 202).

Change Initiative Overview

When it comes to introducing changes into an oil corporation, environmental changes are the most fundamental. Similar to OGCI report, ADNOC should also strengthen the actions and investments for reducing the intensity of greenhouse gas in the global energy background (Oil and gas CEOs jointly declare action on climate change 2015, para. 5).

The company should spend times and efforts on studying and the negative effects of the climate changes and create a new business plan that will not lead to the global temperature rises caused by harmful production facilities. Such business strategy will strengthen the company’s position on the global scale and will show its proactiveness and seriousness. The main tool for achieving success in the change initiative is the introduction of new technologies as ways for cleaner energy. However, some critics of such an initiative may say that the willingness to put an emphasis on the environmental strategy is just an at for gaining attention (Willsher 2015, para. 15).

Reference List

ADNOC Joint Venture Agreements n.d. Web.

About ADNOC n.d. Web.

Abu Dhabi National Oil Company (ADNOC) 2015. Web.

ADNOC sustainability report 2009. Web.

Baxter, K 2009, Oil industry giants: ADNOC. Web.

Daya, A 2011, Abu Dhabi changes ADNOC management Amid talks on oil concessions. Web.

Oil and gas CEOs jointly declare action on climate change 2015. Web.

Saboohi, N & Sushil 2011, ‘Revisiting organizational change: exploring the paradox of managing continuity and change’, Journal of Change Management, vol. 11, no. 2, pp. 185-206. Web.

Stoltzfus, K, Stohl, C & Seibold, D 2011, ‘Managing organizational change: paradoxical problems, solutions, and consequences’, Journal of Organizational Change Management, vol. 24, no. 3, pp. 349-367. Web.

Willsher, K 2015, Oil companies deny that joint climate pledge is lip service. Web.