Abu Dhabi National Oil Co. (ADNOC) plans to spend more than $109 billion over the next five years, and is in talks with Saudi Aramco for possible downstream joint ventures abroad, with a focus on Asia, Reuters reported.
The planned $109 billion in spending by ADNOC aims to boost gas output and investment in international downstream activities, as well as increasing its crude refining capacity by 60%.
ADNOC may look at a refinery and petrochemical project in India, which Aramco signed an initial agreement for on April 11 with a consortium of Indian state refiners, one source told Reuters. However, the source added that talks were at a very early stage and no decision had been taken. It was not clear whether ADNOC would join Aramco on the same project.
Top executives from Aramco and India’s Ratnagiri Refinery & Petrochemicals – a joint venture of Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp – signed a memorandum of understanding (MoU) to take equal stakes in the project in Maharashtra state.
Aramco may introduce a strategic partner to share its 50% stake at a later stage, Saudi Energy Minister Khalid Al-Falih stated in New Delhi. Aramco Chief Executive Amin Nasser declined to comment on whether Aramco had been in talks with ADNOC for such a partnership.
The project includes a 1.2 million barrels per day (mb/d) refinery integrated with petrochemical facilities with a total capacity of 18 million tonnes per year.
