Eni and ADNOC, Abu Dhabi’s National Oil Company, have closed their strategic partnership, announced in January, through which Eni acquired a 20% equity interest in ADNOC refining. The partners – which include Austria’s OMV – also set up a new trading joint venture.
ADNOC Refining refines in excess of 922 000 bpd of crude at its Ruwais and Abu Dhabi based refineries. The transaction is one of the world’s largest-ever in the refining business and 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 a single-site refining and petrochemicals complex.
The final cash price is approximately US$3.24 billion.
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.
These agreements demonstrate the strong partnership between Eni and ADNOC. With this transaction, Eni enters the UAE downstream sector and increases its global refining capacity by 35%. It follows the company’s strategy of making Eni’s overall portfolio more geographically diversified and more balanced along the value chain.
Read the article online at: https://www.hydrocarbonengineering.com/refining/31072019/eni-and-adnoc-agree-strategic-partnerships-in-refining-and-trading/