Agreements in line with ADNOC's ambition to expand downstream portfolio as part of its 2030 growth strategy
ADNOC signed two memoranda of understanding (MoUs) with OMV and one MoU with Borealis to explore new opportunities for collaboration in the downstream sector.
ADNOC and OMV agreed to evaluate new opportunities in petrochemical projects as a potential extension to their existing partnerships, and exchange knowledge and experience in refinery-petrochemical integration and optimisation. The two companies will also assess opportunities for petrochemical marketing support.
The companies also agreed to jointly explore the potential of OMV’s ReOil technology in Ruwais and ADNOC’s integrated refining and petrochemical hub in the Al Dhafra region of Abu Dhabi. OMV’s ReOil recycling process produces synthetic crude oil from used plastics.
The third MoU will see ADNOC and Borealis jointly explore potential growth opportunities within the integrated polyolefin industry in key geographical markets.
Dr Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO, said, "OMV brings world-class expertise and advanced technology that will enable us to further stretch the value of our crude and secure greater returns from the global growth in demand for petrochemicals as we accelerate delivery of our 2030 smart growth strategy.
"This is yet another stepping stone in our journey to grow ADNOC’s downstream portfolio and establish Ruwais as a global refining and petrochemical hub.”
Dr Al Jaber said he proposed agreement with Borealis, an existing strategic partner, will potentially create growth opportunities "for our mutual benefit, and ensure we are well positioned to meet the growing demand for a variety of high-value refined and petrochemical products.”
ADNOC and OMV collaborate in several areas across the full value chain from upstream to downstream.
In January, OMV acquired a 15% share in ADNOC refinery in a transaction that values ADNOC Refining at an enterprise value of $19.3bn.
This followed an award by ADNOC to OMV in December 2018 of a 5% stake in the Ghasha ultra-sour gas concession for 40 years and 20% stakes in the SARB and Umm Lulu oil fields offshore concessions in April 2018.
Since 1998, ADNOC and Borealis have collaborated as joint venture partners in Borouge.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.