Abu Dhabi, UAE, January 28 - Neftegaz.RU. ADNOC signed two new strategic equity partnerships with Eni and OMV covering both ADNOC Refining and a new trading joint venture, which will be jointly established by the three partners.
ADNOC reported this on January 27, 2018.
The signing of the agreements was witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, His Excellency Giuseppe Conte, Prime Minister of Italy, and His Excellency Hartwig Löger, Austria’s Federal Minister of Finance.
The agreements were signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, Claudio Descalzi, CEO of Eni and Dr. Rainer Seele, Chairman of the OMV Executive Board and CEO.
In one of the largest ever refinery transactions, Eni and OMV will acquire 20% and 15% shares in ADNOC Refining respectively, with ADNOC owning the remaining 65%.
The agreement values ADNOC Refining, which has a total refining capacity of 922,000 barrels per day, and which operates the fourth largest single site refinery in the world, at an enterprise value of $19.3 billion.
As a further part and condition of this agreement, the partners will also establish a trading joint venture, in which Eni and OMV will own 20% and 15% of the shares respectively.
Proceeds to ADNOC from the sale are estimated to be $5.8 billion, subject to completion adjustments.
The transaction reflects the scale, quality and growth potential of ADNOC Refining’s assets, coupled with an advantageous location from which to supply markets in Africa, Asia and Europe.
Eni and OMV have strong track records in maximizing value from advanced, complex refinery operations and bring to the partnership extensive operational and project management experience and expertise.
Further value will be created from the new global trading joint venture, which, once established, will be an international exporter of ADNOC Refining’s products, with export volumes equivalent to approximately 70 per cent of throughput.
Domestic supply within the UAE will continue to be managed by ADNOC.
Under the terms of the agreements, ADNOC, Eni and OMV’s trading joint venture will be incorporated at Abu Dhabi Global Markets.
Physical and derivative trading will likely begin as early as 2020 when all necessary processes, procedures and systems are in place.
Eni and OMV will provide ADNOC with know-how, operational experience and support to accelerate the development of the trading joint venture, enabling ADNOC and its partners to optimize their systems and better manage their international product flows.
The transaction is expected to close in Q3 2019, subject to customary closing conditions and regulatory approvals.
To read this news in Russian.