Gulf Oil and Gas accountACCOUNT

ADNOC Mulls Downstream Opportunities Abroad with Aramco

Source: Reuters 4/11/2018, Location: Middle East

Abu Dhabi National Oil Co (ADNOC) is in talks with several partners, including Saudi Aramco, for possible downstream joint ventures abroad, particularly in Asia, industry sources with knowledge of the matter told Reuters.

The Abu Dhabi state energy company wants to increase its crude refining capacity by 60 percent and boost petrochemical production.

It plans to spend more than 400 billion dirhams ($109 billion) in the next five years, which will include boosting gas output and investing in international downstream activities, the company said in November.

ADNOC wants to expand its downstream portfolio in markets where demand for oil is still growing, such as China and India, securing a new outlet for its crude.

“As part of ADNOC’s further expansion of our downstream business, we are exploring a number of select international downstream opportunities, especially in growth markets. We will update the market in due course,” an ADNOC spokesman said on Wednesday, declining to comment on specific projects.

One source said the opportunities ADNOC could be looking at included a refinery and petrochemical project in India, for which Aramco signed an initial agreement on Wednesday with a consortium of Indian state refiners.

The source said talks were at a very early stage and no decision had been taken. It was not clear whether ADNOC would join Aramco on the same project.

In March, an executive of Indian Oil Corp said ADNOC was interested in buying a stake in its planned west coast refinery.

Top executives from Aramco and India’s Ratnagiri Refinery & Petrochemicals - a joint venture of Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp - signed a memorandum of understanding to take equal stakes in the project in Maharashtra state.

Aramco may introduce at a later stage a strategic partner to share its 50 percent stake, Saudi Energy Minister Khalid al-Falih said on Wednesday in New Delhi. Aramco Chief Executive Amin Nasser declined to comment on whether Aramco had been in talks with ADNOC for a partnership in the project.

The project includes a 1.2-million-barrels-per-day (bpd) refinery integrated with petrochemical facilities with a total capacity of 18 million tonnes per year.

It will be one of the largest refining and petrochemical complexes in the world, built to meet fast-growing fuel and petrochemicals demand in India and elsewhere, and providing a steady outlet for Saudi crude oil.

Investment News in United Arab Emirates >>

Egypt >>  12/3/2018 - Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources, discussed with the Spanish Ambassador to Egypt, Ramon Gil-Casares, ways of boosting ...
South Korea >>  12/3/2018 - Hanwha Total Petrochemical, a 50/50 joint venture between Total and Hanwha, will invest nearly $500 million to further expand its Daesan integrated re...

Oman >>  12/2/2018 - Oman has announced plans to offer six new oil and gas blocks for investment as part of the 2019 Licensing Round due to be unveiled in the first quarte...
India >>  11/30/2018 - Great Eastern Energy Corp (GEECL) will invest up to USD 2 billion over the next 10 years in its Raniganj (south) block in West Bengal to exploit shale...

Saudi Arabia >>  11/26/2018 - Baker Hughes, a GE company received recognition for its localization efforts and announced a series of agreements at Saudi Aramco’s In-Kingdom Total V...
Saudi Arabia >>  11/26/2018 - Saudi Aramco hosted its 4th IKTVA Forum & Exhibition this week at the Dhahran Expo Center in Dammam, attracting more than 1,000 local and internationa...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United Arab Emirates Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.