Abu Dhabi oil refining company (Adnoc) has announced the closure of a landmark strategic equity partnership with Eni, an Italian oil and gas company and OMV, the Australian oil and gas company.
All necessary processes, procedures and systems for the deal will be in place by 2020. The physical and derivative trading is slated to begin then. Eni and OMV’s support and operational experience would enable their joint venture to develop quickly by optimising their system and properly managing their international product flows.
Adnoc’s partnership with Eni and OMV demonstrates the company’s transformation strategy in response to changing and evolving energy landscape. The support and operational experience provided by the two partner companies would enable Adnoc to maximise the utilization of its market opportunities
The agreement, announced in January of this year, covers both existing Adnoc refining business as well as a new trading joint venture. The new trading joint venture has been named Adnoc Global Trading and is located at Abu Dhabi global market. The deal is one of the world’s largest refinery transactions.
Under the terms of the deal, Eni has acquired 20 percent and OMV 15 percent shares in Adnoc. Adnoc is one of the world’s leading energy and petrochemicals group with a daily output of about 3 million barrels of oil and 10.5 billion cubic feet of natural gas.
Adnoc refining has the capability to refine 92,000 barrels of crude oil every day, which is condensated at Ruwais and Abu Dhabi based refineries.
The deal reflects the growth potential of Adnoc’s refining assets. Adnoc is a primary catalyst for UAE’s growth and diversification, having around 14 specialist subsidiaries and joint venture companies. Adnoc refining was formed as a separate entity from Adnoc group in 1999, to take over the responsibility of refining operations. It has three refineries: Ruwais East, Abu Dhabi and Ruwais West and employs around 4700 staffs.