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ABU DHABI / WAM
The Abu Dhabi National Oil Company (Adnoc) on Wednesday announced that it has closed its landmark strategic equity partnerships with the Italian oil and gas company Eni and the Austrian oil and gas company OMV, covering both the existing Adnoc Refining business and a new trading joint venture.
The agreement, which was announced in January of this year, includes one of the world’s largest-ever refinery transactions.
Under the terms of the deal, Eni and OMV have acquired 20 percent and 15 percent shares respectively in Adnoc Refining, which refines in excess of 922,000 barrels per day of crude and condensate at its Ruwais and Abu Dhabi based refineries. The transaction reflects the scale, quality, and growth potential of Adnoc Refining’s assets.
Ruwais is the 4th biggest single-site refinery in the world and is the focus of further expansion and integration to develop the world’s largest single-site refining and petrochemicals complex. As a zero heavy fuel oil capable Refining business, it is well-positioned for IMO 2020 (the new regulatory cap on Sulphur emissions for marine fuel). Expanding its refining and petrochemical operations at Ruwais supports Adnoc as it evolves to become a leading global downstream player.
Adnoc, Eni and OMV have now incorporated a new trading joint venture, Adnoc Glob-al Trading, at Abu Dhabi Glob- al Market. Adnoc Global Trading will focus on direct sales of products from the refinery to customers, primarily in As-ia, and in emerging markets. This will enable the entity to capture trading value throug-hout the entire supply chain.
Adnoc is building out its trading activity and capabilities, in order to better optimise and commercialise its assets and product flows to deliver greater value from its operations.
Physical and derivative 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.