Page 16 - DMEA Week 30

DMEA PETROCHEMICALS DMEA

OMV eyes €1.5bn bond sale to

fund Borealis deal

UAE AUSTRIAN oil firm OMV plans to raise €1.5bn pandemic on energy markets.
($1.8bn) from a bond sale sometime within the Borealis, through its Borouge joint venture
OMV reached the deal next year to fund the purchase of an extra 39% with the Abu Dhabi National Oil Co. (ADNOC),
back in March. stake in plastics maker Borealis, it said on July 28. operates the Ruwais complex in the UAE, which
OMV reached the deal, valued at €4.7bn, ADNOC wants to develop into the largest inte-
to buy the shares from Abu Dhabi state inves- grated refining and petrochemicals hub in the
tor Mubadala in March. The oil firm already world. Ruwais currently produces 4.5mn tonnes
has a 36% position at Borealis, but controlling per year of petrochemical products, including
a majority share will provide it with greater say 2.3mn tpy of polyethylene and 1.76mn tpy of
over a key petrochemicals project in the Middle polypropylene. But ADNOC wants to double its
East. capacity by 2030, as part of the UAE’s drive to
“The potential new hybrid bond shall have expand petrochemical exports, particularly to
no maturity date and may be redeemed by OMV China.
on certain dates and under certain conditions,” Mubadala is also a shareholder in OMV,
OMV said in a statement. alongside Austria’s state-run OeBaG. The two
Hybrid bonds have both debt and equity ele- investors agreed on July 23 to extend their col-
ments, and the most common types can be con- laboration until 2023. They meet twice a year to
verted into shares after a certain period. OMV discuss strategy at OMV, Reuters sources said,
is also looking to shed €2bn of assets to fund the as well as the composition of the oil firm’s board.
Borealis deal, including a share in an Austrian Their existing collaboration deal had been due to
gas pipeline operator and chain of almost 300 expire in around 18 months.
filling stations in southern Germany. “OMV remains a strong and important part
Like most oil and gas producers, OMV is of our portfolio,” Mubadala’s CEO for petroleum
under considerable financial strain as a result and petrochemicals, Musabbeh Al Kaabi, said in
of the impact of the coronavirus (COVID-19) a statement. ™

Sasol to shed air separation units

SOUTH AFRICA SOUTH Africa’s Sasol has entered exclusive in January 2018. It built the other 16 as well but
talks with Air Liquid for the sale of 16 of its air subsequently sold them to Sasol.
The deal is expected to separation units in Secunda, it announced this “Climate action is at the heart of Air Liquide’s
be worth $506mn. week. Proceeds from the sale, expected to total growth strategy and our climate objectives are
ZAR8.5bn ($506mn), will likely go towards set- the most ambitious of our sector,” Air Liquide
tling some of Sasol’s debts. CEO Benoit Potier said. “Our capacity for inter-
The South African firm signed an exclusiv- vention is wide and goes from renewable ener-
ity agreement with Air Liquide. The pair aim to gy-based hydrogen or oxygen production to
reach a deal agreement by mid-August and close energy efficiency programmes on existing sites.”
it in 2021, subject to due diligence and other “Solutions exist and we will continue to
approvals. champion these worldwide. Now is the time to
The air separation units comprise the world’s act,” he said.
largest oxygen production complex, according His counterpart at Sasol Fleetwood Grobler
to Air Liquide. The French company wants to welcomed Air Liquide as a business partner in
modernise them over multiple years, helping the “decarbonisation journey.”
among other things to reduce their emissions, Sasol is selling various properties to raise cash
including C02 by 30-40%. Air Liquide will also in response to the market collapse. It has agreed
provide gases to Sasol under a long-term supply to divest its 10% Escravos gas-to-liquids (GTL)
deal. plant in Nigeria to US major Chevron and is also
Air Liquide already controls a 17th air sep- seeking buyers for a pipeline that brings gas from
aration unit in Secunda that it commissioned Mozambique. ™

P16 www. NEWSBASE .com Week 30 30•July•2020