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Wed 31 Jul 2019 02:03 PM

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UAE's Adnoc closes $5.8bn refining deal with Eni, OMV

Abu Dhabi National Oil Company says agreement includes one of the world's largest-ever refinery transactions

UAE's Adnoc closes $5.8bn refining deal with Eni, OMV

Abu Dhabi National Oil Company (Adnoc) on Wednesday announced that it has closed its equity partnerships with the Italian oil and gas company Eni and the Austria-based OMV.

The agreement, which was announced in January of this year, includes one of the world’s largest-ever refinery transactions, Adnoc said in a statement.

Eni and OMV have agreed to pay about $5.8 billion for a combined 35 percent stake in the Abu Dhabi state oil company’s refining unit, valuing Adnoc Refining at $19.3 billion.

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.

Ruwais is the fourth 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.

Adnoc, Eni and OMV have now incorporated a new trading joint venture, Adnoc Global Trading, at Abu Dhabi Global Market which will focus on direct sales of products from the refinery to customers, primarily in Asia, and in emerging markets.

Physical and derivative trading is expected to begin in 2020 when all necessary processes, procedures, and systems are in place, the statement added.

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