- Under the partnership agreement, Eni would be acquiring about 20% of ADNOC’s state oil farm while OMV would be acquiring over 15%.
- The companies would also be forming a Joint Venture (JV) to sell their refined oil products in markets across the world.
The Abu Dhabi National Oil Company (ADNOC), UAE’s state-owned oil firm, has reportedly announced that it has entered into partnership deals worth over $5.8 billion with Austrian & Italian oil & gas firms, OMV & Eni S.p.A. respectively, to award them stakes in its refining unit.
Reports cite, under the terms of the agreement, Eni would be acquiring about 20% of ADNOC’s state oil farm, ADNOC Refining, while OMV would be procuring over 15% stake in the unit. The remaining 65% stake would be retained by the company.
According to a report by Bloomberg, the partnership agreement values the state-owned oil company at about $19.3 billion. Apart from the partnership deals, the company has also announced that it would be forming a Joint Venture (JV) with the two European firms to sell their refined oil products in markets across the world.
The CEO of ADNOC, Sultan al-Jaber stated that the two innovative partnership deals would be greatly supporting the company’s ambition of establishing itself as a leading international downstream player that has the flexibility to respond immediately to changing market needs as well as dynamics.
The CEO of Eni, Claudio Descalzi stated that the transaction to acquire a 20% stake in ADNOC Refining would be boosting the form’s refining capacity on a global level by as much as 35%/
The Executive Board member for Downstream at OMV, Manfred Leitner stated that the ADNOC Refining partnership agreement would be responsible for boosting the company’s overall refining capacity, which can grow by approximately 40%.
According to reports, the deal is scheduled to reach conclusion by the third quarter of 2019 following certain regulatory approvals, with implementation expected to start by the next year.