The Abu Dhabi National Oil Company (ADNOC) inked on January 27 two new agreements with Eni and OMV for refining and for a trading joint venture (JV) which will be jointly established by the three companies, ADNOC announced.
The agreements were signed by Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO; Claudio Descalzi, Eni CEO; and Dr. Rainer Seele, Chairman of the OMV Executive Board and CEO.
“Working closely with our partners, we will also deliver further efficiencies across our operations and improve asset and business performance,” Al Jaber said.
Under these agreements, Eni and OMV will provide ADNOC with the needed know-how, operational excellence and support.
According to the refining agreement, ADNOC will hold 65% of the projects, Eni will take 20% interest and the remaining 15% will be held by OMV. Moreover, the project will have a capacity of around 922,000 barrels per day (b/d) with an investment cost of about $19.3 billion.
In addition, for the trading JV, Eni and OMV will hold 20% and 15% of the project’s shares respectively. ADNOC’s returns from the sale are estimated to be around $5.8 billion.
Once establishing the refining, 70% of its throughput will be exported while ADNOC will continue managing the domestic supply.
Moreover, the JV is planned to be incorporated at Abu Dhabi Global Markets and is supposed to be operated by early 2020. The transaction is expected to close in Q3 2019, subject to customary closing conditions and regulatory approvals.
