ADNOC Closes ‘Landmark’ Partnerships

Acquires Stake in VTTI

State-owned oil firm Abu Dhabi National Oil Co. has closed "landmark" equity partnerships with energy firms Eni and OMV and announced the acquisition of a stake in oil storage firm VTTI.

The deals mark a strategic move by the firm to expand its global presence and includes one of the world’s largest-ever refinery transactions.

“Eni and OMV have acquired 20 percent and 15 percent shares, respectively, in ADNOC Refining, which refines more than 922,000 barrels per day of crude and condensate at its Ruwais and Abu Dhabi based refineries. The transaction reflects the scale, quality and growth potential of ADNOC Refining’s assets,” a spokesperson for the firm said.

Ruwais Expansion

ADNOC’s Ruwais facility is the fourth-biggest single-site refinery in the world and is expected to spur major breakbulk activity through further expansion and integration work to create the world’s largest single-site refining and petrochemicals complex.
“ADNOC, Eni and OMV have now incorporated a new trading joint venture, ADNOC Global Trading, at Abu Dhabi Global Market (ADGM). ADNOC Global Trading will focus on direct sales of products from the refinery to customers, primarily in Asia, and in emerging markets,” an ADNOC spokesperson said.

VTTI Stake

Following the closure of the deal with Eni and OMV, the firm announced a “strategic investment” in global storage terminal owner and operator VTTI that will see ADNOC secure a 10 percent stake.

“The investment in VTTI provides ADNOC access to storage capabilities across some of its key export markets such as Asia, Africa and Europe while also securing additional facilities at the port of Fujairah, UAE, its main storage hub. This transaction also significantly contributes to the development and growth of ADNOC’s global marketing, supply and trading platforms,” the firm said in a statement
VTTI owns 15 hydrocarbon storage terminals across 14 different countries and operates a storage network with capacity for around 60 million barrels of combined storage. The remaining shares in VTTI are owned by IFM Global Infrastructure, with a 45 percent stake, and Vitol, with a further 45 percent stake.
As the state-owned oil company of the UAE, ADNOC controls some of the largest oil and gas reserves in the world and is ranked as one of the largest oil companies by production.