Abu Dhabi National Oil Company (ADNOC) has struck equity partnerships with Italy’s Eni and Austria’s OMV covering ADNOC refining and a new trading venture to be jointly established by the three partners.
The transaction, which will bring proceeds of $5.8 billion to ADNOC, is one of the largest ever in the refinery business, and was hailed as a “one of a kind” deal by ADNOC’s Chief Executive Sultan al-Jaber.
“The whole oil and gas industry hasn’t seen a transaction of this size and sophistication,” he said.
Under the agreement, Eni and OMV will acquire a 20 percent and a 15 percent share in ADNOC Refining respectively, with ADNOC owning the remaining 65 percent.
The partners will also establish a joint trading venture in which Eni and OMV will again own 20 percent and 15 percent respectively, a statement from ADNOC on Sunday said.
The agreement gives ADNOC Refining, which has a total refining capacity of 922,000 barrels per day, an enterprise value of $19.3 billion.
OMV said separately that it would pay around $2.5 billion, while Eni said it would pay around $3.3 billion.
The new trading venture will provide expanded market access for ADNOC Refining’s products with export volumes equivalent to approximately 70 percent of throughput.