ADNOC signs strategic partnership deal with ENI, OMV

ENI and OMV will acquire 20 percent and 15 percent of ADNOC Refining respectively, with ADNOC owning the remaining 65 percent. (File photo: Reuters)

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.

SHOW MORE
Last Update: Wednesday, 20 May 2020 KSA 09:58 - GMT 06:58
Top