Page 12 - MEOG Week 18 2022

MEOG NEWS IN BRIEF MEOG

Despite talk of a U.S. “Plan B” to address (Mubadala) last week announced a strategic ADNOC is well-positioned to capitalize
Iran’s nuclear program if the deal cannot be transaction involving Borealis AG (Borealis), on growth opportunities in the chemicals and
revived, there are few good options. one of Europe’s leading petrochemical petrochemical sector, building on its world-
Iran has been saying with or without a companies. Under this agreement, ADNOC class refining and petrochemicals facilities
revival of the JCPOA it has no intention to will acquire a 25% shareholding in Borealis in Al Ruwais Industrial City, Abu Dhabi.
build nuclear arms. The main lever big powers from Mubadala. Financial details of the The Company has already embarked on a
have is to cut Iran’s oil exports. transaction are not being disclosed. major expansion drive, including the recently
While Washington won the tacit support of Upon completion of the transaction, which announced Borouge 4 complex and the
Moscow and Beijing to curb Iranian exports is subject to customary closing conditions TA’ZIZ Industrial Chemicals Zone in Ruwais.
via U.S. sanctions in the years before the 2015 and regulatory approvals, Borealis will be His Excellency Khaldoon Khalifa Al
deal, there is no such consensus among the big owned 25% by ADNOC and 75% by OMV, an Mubarak, Managing Director and Group
powers. Russia’s invasion of Ukraine despite Austrian multi-national integrated oil, gas and CEO, Mubadala, said: “We have partnered
U.S. and European warnings show Moscow’s petrochemical company listed on the Vienna with OMV and ADNOC for two decades
assent cannot be taken for granted. Stock Exchange. Borealis is a leading global to build Borealis into a global champion.
China is the chief buyer of Iranian oil and provider of advanced and circular polyolefin Throughout this time, we have been proud
the sources said getting it to cut back will be solutions and a European market leader in of the company’s growth, innovation and
tough when oil supplies are tight. base chemicals, fertilizers and mechanical continuing success in sustainability. Now the
Asked previously about its purchase of recycling of plastics. time is right for OMV and ADNOC to take
Iranian oil in violation of U.S. sanctions, The investment in Borealis extends this partnership to the next level capitalizing
China’s Foreign Ministry has reiterated ADNOC’s international footprint in the on synergies with the wider ADNOC
Beijing’s opposition to U.S. extraterritorial fast-growing chemicals and petrochemical portfolio.”
sanctions and urged the United States to sector, unlocking new opportunities in key This investment represents the latest
remove its unilateral sanctions. markets where Borealis operates, particularly milestone in ADNOC’s strategic growth
Iranian oil exports rose in the first quarter in Europe and the Americas. This transaction and investment approach and reinforces
to an average of 870,000 barrels per day, marks another important milestone as ADNOC’s role as a catalyst for responsible
according to Kpler, which tracks oil flows, up ADNOC accelerates the delivery of its and sustainable investment and value creation
from 668,000 bpd in the fourth quarter. Downstream and Industrial growth program, for Abu Dhabi and the UAE.
The United States would, in effect, have to further expanding the Company’s long- ADNOC
manage one effort to cut Russia’s oil exports standing partnership with Borealis.
and another to slash Iran’s. Commenting on the transaction, His
“Can you galvanize two sanctions Excellency Dr. Sultan Al Jaber, Minister of OIL
coalitions at once? That’s tricky,” said another Industry and Advanced Technology and
source, saying Iran is now selling about half ADNOC Managing Director and Group Noticeable increase in
the volume of oil that it could sell if U.S. CEO said: “Globally, the chemicals and
sanctions were removed but, because of the petrochemical sector is poised for significant Japan’s imports of UAE
price rise, pocketing the same revenue. consumer-led growth in the decades ahead.
“(Why should Tehran) make a painful ADNOC is therefore delighted to be making crude
concession when they’re basically already this strategic investment for a 25% stake in
getting that oil benefit?” he said. Borealis, a world-leading petrochemicals Japan’s imports of crude oil from the United
TEHRAN TIMES company, with whom we have already Arab Emirates increased significantly in
collaborated in a close and trusted partnership March 2022, reaching 34.11 million barrels, or
over two decades through our jointly held 38.3% of the total, compared to 24.67 million
COMPANIES Abu Dhabi-based polyolefins company barrels, or 31.4% in February, according to
Borouge. Alongside OMV, ADNOC will data from the Agency for Natural Resources
ADNOC acquires 25% stake be a co-shareholder in Borealis, with this and Energy, that belong to the Ministry of
Economy, Trade and Industry.
investment giving further impetus to our
in Borealis local and international petrochemical and providers and at a crucial importance for the
This puts the UAE on the top of crude oil
industrial growth program and accelerating
Abu Dhabi National Oil Company (ADNOC) our transformation into an integrated and Japanese energy needs.
and Mubadala Investment Company global energy player.” Japan’s total oil imports in March

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