ABU DHABI: The Abu Dhabi National Oil Company (Adnoc) on Saturday signed two Memorandum of Understanding (MoU) with OMV and one MoU with Borealis to explore new opportunities for collaboration in the downstream sector.
The signing of the agreements was attended by His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Sebastian Kurz, Chancellor of Austria.
The agreements with OMV were signed by Dr. Sultan Bin Ahmad Sultan Al Jaber, Minister of State, Adnoc Group CEO, and Dr. Rainer Seele, Chairman of the OMV Executive Board and CEO.
The agreement with Borealis was signed by Dr. Al Jaber and Alfred Stern, Borealis CEO.
Under the terms of the first MoU, Adnoc and OMV will evaluate new opportunities in petrochemical projects as a potential extension to their existing partnerships, and exchange knowledge and experience in refinery-petrochemical integration and optimisation. The two companies will also assess opportunities for petrochemicals marketing support.
The second MoU will see Adnoc and OMV jointly explore the potential of OMV’s ReOil technology in Ruwais, Adnoc’s integrated refining and petrochemicals hub in the Al Dhafra region of Abu Dhabi. OMV’s ReOil recycling process produces synthetic crude oil from used plastics.
The third MoU will see Adnoc and Borealis jointly explore potential growth opportunities within the integrated polyolefin industry in key geographical markets.
“The agreements with OMV build on, and further strengthen, our long-term partnership across the full oil and gas value chain,” said Al Jaber. “OMV brings world-class expertise and advanced technology that will enable us to further stretch the value of our crude and secure greater returns from the global growth in demand for petrochemicals as we accelerate delivery of our 2030 smart growth strategy.”
“In line with our downstream expansion strategy, Adnoc is pursuing investments that will maximise value from our existing resources and secure more effective market access for our expanding portfolio of products.”
In January, OMV acquired a 15 per cent share in Adnoc refinery in a transaction that values Adnoc Refining at an enterprise value of $19.3 billion. This followed an award by Adnoc to OMV in December 2018 of a 5 per cent stake in the Ghasha ultra-sour gas concession for 40 years and 20 per cent stakes in the SARB and Umm Lulu oil fields offshore concessions in April 2018.