ABU DHABI - The Abu Dhabi Investment Authority.

ADIA is the third most powerful institution in Abu Dhabi next to the Executive Council and the SPC. Although it is headed by young Shaikh Ahmad Bin Zayed, its decision making mechanism is overseen by Ahmad Bin Khalifa Al Suwaidi, who represents Shaikh Zayed on the SPC, the boards of ADIA and other institutions. ADIA is in charge of the emirate's local, regional and overseas investments. Abu Dhabi Investment Co. (ADIC) is an executive arm of ADIA.

The Abu Dhabi National Oil Co. (ADNOC) is in charge of implementing SPC decisions and forms the second tier of power. It has authority on day-to-day basis over the petroleum sector in Abu Dhabi, deciding how SPC decisions must be executed. ADNOC is in a position to advise and recommend to the SPC by using its experience - for example, by suggesting which is best among available options for a project and why.

ADNOC went through a massive restructuring process from October 1998 to mid-1999. The aim was to improve efficiency and prepare the company for future challenges. It has since become a holding concern conducting its business as an integrated entity, through eight autonomous directorates:

1. The E&P Directorate, under Abdullah Bin Nasser Al Suwaidi and in charge of the upstream, consists of four divisions: E&P Planning, Petroleum Resources, Onshore and Offshore. They have to "plan, guide and drive for the discovery and optimal development of Abu Dhabi's petroleum resources through exploration in own, joint venture or other concession areas", as determined by the SPC. Suwaidi led a five-member team which oversaw ADNOC's restructuring.

Under this directorate come four operating subsidiaries: the onshore JV ADCO, headed by Kevin Dunne; the main offshore JV ADMA-OPCO, headed by Henry Bacconnier; the offshore ZADCO, headed by T. Shimamura; and National Drilling Co., headed by Najeeb Al Zaabi (see profiles of the operating companies in Gas Market Trends No. 2).

2. The Gas Processing Directorate, under Rashid Bin Saif Al Suwaidi, is in charge of the gas plants and JVs. Under it come the onshore NGL/LPG JV Gasco, headed by Saif Bin Nasser Al Suwaidi; the LNG JV ADGAS, headed by Rashid Al Jarwan; and the newly created, wholly-owned Abu Dhabi Gas Co. (Atheer) which is headed by Mohammed Bin Rashid Al Otaiba.

3. The Chemicals Directorate, under Abdullah Bin Saeed Al Badi, is in charge of the chemicals sector - now the Borouge olefins JV (60% ADNOC & 40% Borealis), which is headed by Joost Schrevens, and the fertiliser producer Fertil which is headed by Abdel Hakim Al Suwaidi.

4. The crude oil and products Marketing and Refining Directorate under Mohammed Al Hamli. This is in charge of for the newly created Abu Dhabi Refining Company (Takreer), headed by Ali Bin Saeed Al Badi who previously was in charge of crude oil marketing; and ADNOC-FOD, headed by Jamal Bin Jaber Al Dhareef.

5. The Shared Services Directorate, under Said Ahmad Al Ajlan, is the biggest of the five operating groups. Under it come five units: the Abu Dhabi Drilling Chemicals & Products Co. (ADDCAP), headed by Mahfoudh Al Darbool; Abu Dhabi Petroleum Ports Operating Co. (ADPPOC), headed by Khalifa Al Qubaisi; Abu Dhabi National Tanker Co. (ADNATCO), headed by Mohammed Salem Al Dhaheri (who previously used to head the Projects Directorate); National Gas Shipping Co. (NGSCs), headed by Al Taher Musabbah Al Kindi; National Marine Services Co. (NMS), headed by Ali Mohammed Al Yabhouni; and the National Petroleum Construction Co. (NPCC), a JV with CCC headed by Akil Al Mahdi (see logistics in OMT 3).

This directorate also has responsibility for providing the other groups with information technology (IT), project management, and procurement.

6. The Human Resources and Administration Directorate, under Khalaf Bin Rashid Al Otaiba who previously was head of the processing division and was once head of the marketing division. In February 1999, this directorate set up an eight-member Projects Steering Committee to monitor, evaluate, streamline co-ordination of, and endorse or approve ADNOC's major civil projects. Headed by Khalaf Al Otaiba, it also provided guidance and direction to the project team.

7. The Management Support Directorate, under Ahmad Bin Ali Al Sayegh.

8. The Finance Directorate, under Nasser Bin Ahmad Al Suwaidi.

The latter three directorates come directly under the office of ADNOC's CEO, Yusuf Bin Omeir Bin Yusuf. ADNOC also has an executive committee responsible for discussing and following up all company business. This is chaired by the company's CEO.

Background: The characteristics of ADNOC's executive structure have changed radically over the past two decades. When ADNOC began operations in early 1972, Algerian executives were in charge. But a clear shift occurred in the mid-1980s, leading to the formation of the SPC in 1988 and the departure of Algerian CEO Mahmoud Hamra-Krouha in the same year.

Krouha and fellow Algerians in the management were replaced by young Abu Dhabian university graduates. The number of young Abu Dhabians joining the decision makers in ADNOC and other institutions has been increasing steadily over the past two decades. In the latest restructuring, ADNOC had to employ 200 more people, mainly Abu Dhabians.

The Al Nahyans are descended from Shaikh Nahyan, an 18th century tribal chieftain descended from Shaikh Yas. Originally from Yemen, near Maarib, Shaikh Yas was an ancestor of Dubai's ruling Al Maktoums as well. They formed the Bani Yas Confederation along with other tribes in Arabia and later moved to the southern Gulf coast (see Gas Market Trends).

The power of any decision maker in Abu Dhabi depends on his of her political and social standing, which in turn reflects the following factors: (a) the person's relation to the main groups in the Al Nahyan family, (b) the tribal background, (c) the family's wealth, and (d) the educational or career background.