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ADNOC finalises refining, trading partnership with Eni, OMV

Jul 31, 2019
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Abu Dhabi National Oil Company (ADNOC), closed an equity partnership agreement with Italy's Eni and Austria's OMV in ADNOC Refining and a new trading joint venture.

As part of the partnership agreement, Eni invests $3.24 billion and OMV invests US$2.43 billion, the two companies said in separate statement. This results in an equity holding of 20 per cent for Eni and 15 per cent for OMV in ADNOC Refining and the trading joint venture and ADNOC the remaining 65 per cent.

ADNOC Refining owns and operates in excess of 922,000 barrels per day of refining capacity in Abu Dhabi. The ADNOC subsidiary employs approximately 4,700 staff and operates the world’s fourth largest single site refinery complex (Ruwais East and West), as well as the Abu Dhabi Refinery. With nearly zero heavy fuel oil yield, it is well positioned for IMO 2020 (regarding low Sulphur marine fuel).

The highly complex refinery site is already integrated into petrochemicals with the production of more than 1.5 million tonnes per annum of propylene. It furthermore encompasses advanced logistics networks as well as utility assets supplying the Ruwais site. A strong value-focused project pipeline targets increased feedstock flexibility and upgrade of existing production.

ADNOC, Eni and OMV have now incorporated a new trading joint venture at Abu Dhabi Global Market, with the same shareholding as in ADNOC Refining. Trading is expected to begin in 2020 when all necessary processes, procedures and systems are in place. Eni and OMV will provide ADNOC with know-how, operational experience and support to accelerate the development of the trading joint venture, enabling ADNOC and its partners to optimise their systems and better manage their international product flows.

“This meets the global fuels demand that is expected to increase by 9 per cent from 2017 to 2030 driven by the Asia Pacific region according to World Energy Outlook 2018, IEA,” OMV said.

With this transaction, Eni enters the UAE downstream sector and increases its global refining capacity by 35 per cent, while OMV increases its refining capacity by 40 per cent and its olefin capacity by 10 per cent.

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