The Abu Dhabi National Oil Company (ADNOC) signed two Memorandum of Understanding's (MoUs) with OMV and one with Borealis to explore new opportunities for collaboration in the downstream sector, the company announced Saturday.
ADNOC is one of the world's leading diversified energy and petrochemicals groups with a daily output of about 3 million barrels of oil and 10.5 billion cubic feet of natural gas.
According to the company's statement, under the terms of the first MoU, ADNOC and Austrian energy company OMV will evaluate new opportunities in petrochemical projects as a potential extension to their existing partnerships, and exchange knowledge and experience in refinery-petrochemical integration and optimization. The two companies will also assess opportunities for petrochemicals marketing support.
The second MoU will see the companies jointly explore the potential of OMV's ReOil technology in Ruwais, ADNOC's integrated refining and petrochemicals hub in the Al Dhafra region of Abu Dhabi. OMV's ReOil recycling process produces synthetic crude oil from used plastics.
According to the press release, the two companies already collaborate in several areas across the full value chain from upstream to downstream. In January, OMV acquired a 15 percent share in ADNOC refinery in a transaction that values ADNOC Refining at an enterprise value of $19.3 billion. This followed an award by ADNOC to OMV in December 2018 of a 5 percent stake in the Ghasha ultra-sour gas concession for 40 years and 20 percent stakes in the SARB and Umm Lulu oil fields offshore concessions in April 2018.
- Integrated polyolefin industry
Under the third MoU signed between ADNOC and Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers based in Vienna, the two companies will jointly explore potential growth opportunities within the integrated polyolefin industry in key geographical markets.
'They will partner to build on their strength which has successfully contributed to the growth of [Abu Dhabi-based] Borouge over the last 20 years to support the growth of customers in key markets through value creation and innovation,' the statement read.
Established as a joint venture between ADNOC and Borealis, Borouge is a leading petrochemicals company that provides innovative plastics solutions for several industries. With 4.5 million tonnes of annual capacity, Borouge is the world's largest integrated polyolefin complex.
As part of its 2030 smart growth strategy, ADNOC has recently embarked on a significant expansion of its downstream business. At the center of its new downstream strategy is a $45 billion investment plan aimed at creating the world’s largest integrated refining and petrochemicals complex in Ruwais, which will see the company triple production of petrochemicals to 14.4. million tons per year by 2025.
By Hale Turkes