Adnoc Seeks Partners on Stronger Petchems Focus

Abu Dhabi National Oil Company (Adnoc) has announced a new business model in which it will seek additional partnerships and co-investors in oil, gas, refining and petrochemicals. In addition, the company is considering initial public offerings (ipos) of its minority stakes in some of its services businesses.

Traditionally a major player in upstream hydrocarbon production, Adnoc wants to increase its focus and resources downstream, where it aims to expand its current petrochemical production from 4.5 million t/y to 11.4 million t/y by 2025. As a result, the group intends to create a number of new opportunities, bringing in partners and investment to improve integration and realize synergies with its upstream and midstream assets, and expand its technological capabilities.

For its midstream business, the group will create a new energy infrastructure that could include the bundling of select assets such as oil, gas or refined products pipelines and storage facilities.

“Shifting global trends are creating a new energy landscape where new rules of engagement are required. In this new energy era, we need more creative strategies and more flexible business models to capture growth,” commented Sultan Ahmed Al Jaber, Adnoc’s CEO and Minister of State for the United Arab Emirates.

“We are developing a range of creative co-investment opportunities from across our value chain and we will soon begin a dialog with both new and existing partners from around the world,” the CEO added.

Adnoc said it has developed a clear set of criteria to select those partners that are forward-thinking, fast-acting and willing to contribute both capital and technological expertise. “The ideal partner will bring tangible strategic value to Adnoc, including access to new markets, technical expertise and a willingness to invest alongside us across our value chain,” Al Jaber noted.

Under the new strategy, Adnoc will also adopt a more active approach to managing its businesses and assets. While limited ipos will be sought for those service businesses that have attractive investment and growth profiles, it daid it will remain a committed and long-term majority shareholder in any listed business. The group stressed that there are no plans for a flotation of Adnoc itself, which will stay under the full ownership of the Abu Dhabi government.