Page 5 - DMEA Week 31

DMEA CommentaRy DMEA
2019, the company intends to open 20-30 new fuel stations in the uAE, with around 100 sta- tions getting a faceli courtesy of a revitalisation programme.
ADNOC Distribution was the second of the parent company’s subsidiaries in which overseas investment was granted following the realisation of the 2017 pledge to embark on “more pro-ac- tive management of its portfolio of assets”. is came in the form of baker Hughes acquiring a 5% stake in ADNOC Drilling in October that year for $550mn.
ADNOC issued a debut international bond through the Abu Dhabi Crude Oil Pipeline (ADCOP) midstream operator in early 2017 and ended the year staging an initial public o ering (IPO) of 10% of ADNOC Distribution.
Busy year
2019 has been a busy year for ADNOC. In the upstream, ADNOC awarded licences from its 2018 licensing round to Occidental Petroleum (for Onshore block 3) and Italy’s Eni and ai- land’s PTTEP (for Onshore blocks 1 and 2).
e most eye-catching of the parent rm’s divestment moves came in the downstream. In January, Eni was again involved when it and Austria-based, Abu Dhabi state-a liated OMV signed share purchase agreements to
acquire interests of 20% and 15% respectively in ADNOC Re neries for a combined total of around $5.8bn a er the deduction of year-end 2018 net debt. ADNOC will retain 65%.
e deal, which values business at around $19.4bn, is scheduled to close in the third quar- ter and covers the 837,000 barrel per day Ruwais re ning complex in the Western Region and an ageing 85,000 bpd facility near Abu Dhabi City, as well as a 1,900-km pipeline network. e trio also agreed to establish a physical and derivatives trading JV incorporated at Abu Dhabi Global Markets for exports of the re neries’ products, which account for around 70% of output, with the rest deployed domestically.
In June, a JV was set up between ADNOC Fertilizer and OCI. Meanwhile, the parent ADNOC announced this week that Singapore’s sovereign wealth fund GIC had acquired a 6% stake in the new ADNOC Oil Pipelines joint venture for $600mn (see: Singapore’s GIC joins ADNOC Oil Pipelines, page 9).
A deal was announced in late July for ADNOC to collaborate with Indonesia’s Per- tamina throughout the value chain, and with talks apparently progressing alongside Saudi counterpart Aramco to build a $60bn re ning and petrochemicals mega complex in India, the Emirati rm is clearly on the front foot.™
india update:
Local media reported that cost estimates for the ADNOC/Aramco re nery in India jumped by more than 36% last week, after protests
by farmers forced the relocation of the plant. The facility is now expected to be built in Roha in Raigad district, around 100 km south of Mumbai.
The heads of ADNOC and VTTI look at a map of storage assets.
Source: ADNOC
Week 31 08•August•2019 w w w . N E W S B A S E . c o m
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