Photo credit: ADNOC
UAE state oil giant, Abu Dhabi National Oil Company (ADNOC), has revealed that it will collaborate with Austrian giants OMV and Borealis to explore new opportunities in the downstream sector.
Under the new MOUs, ADNOC is tying up with OMV to evaluate new opportunities in petrochemical projects along with assessing opportunities for petrochemicals marketing support.
The two parties will also 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.
ADNOC considers the new cooperation with OMV as a stepping stone to grow it's downstream portfolio and establish Ruwais as a global refining and petrochemicals hub.
Furthermore, ADNOC is partnering with Borealis to explore potential growth opportunities within the integrated polyolefin industry in key geographical markets.
Since 1998, ADNOC and Borealis have collaborated as joint venture partners in Borouge, a leading petrochemicals company that provides innovative plastics solutions for several industries. With 4.5 million tons of annual capacity, Borouge is the world’s largest integrated polyolefin complex.
ADNOC plans to invest $45 billion alongside partners over the next five years, to become a leading global downstream player.
The plan includes 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 annum by 2025.
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 $19.3 billion.
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.
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.