Media ININ Economy We Trust
Media IN ABU DHABI, 17th June, 2019 (WAM)
Abu Dhabi National Oil Company is soon teaming up with Dutch chemical producer OCI to create a Middle East fertiliser powerhouse, the companies announced on Monday.
The state-owned energy giant will combine its fertiliser business with OCI’s Middle East and North African nitrogen fertiliser entity to form a new joint venture based out of Abu Dhabi.
Annual revenues for the combined entity are just over $1.7bn, according to 2018 figures. Adnoc has sought to expand its downstream operations – from refining to petrochemicals – as it seeks new outlets for its oil and to bolster the emirate’s economy in the decades to come.
Big producers and countries are turning to adjacent industries in preparation for a time when crude demand slows amid a shift towards cleaner forms of energy.
The latest deal comes as Adnoc has sought out international partners to unlock the potential of its subsidiaries and expand into new foreign markets. Wall Street investment groups BlackRock and KKR in February agreed to invest $4bn in Abu Dhabi’s oil pipelines.
In separate deals, Italian oil major Eni and Austrian producer OMV agreed to pay $5.8bn for a stake in Adnoc’s refining business. Oil field services company Baker Hughes in October acquired a 5 per cent share of Adnoc’s drilling unit.
Adnoc will own a 42 per cent stake in the new venture and OCI will have a 58 per cent share. The deal is expected to close in the third quarter of 2019 subject to legal and regulatory approvals.
The new venture will have a production capacity of 5m tonnes of urea and 1.5m tonnes of ammonia.
