The Abu Dhabi National Oil Company (ADNOC) today announced that it is receiving considerable interest from potential partners, as it explores a range of new growth options and initiatives to accelerate the delivery of its recently announced downstream strategy. The new downstream plans were outlined on Sunday 13th of May, at the ADNOC Downstream Investment Forum in Abu Dhabi.
At the event, ADNOC detailed plans to invest AED 165 billion (US $45 billion), to become a global downstream leader, enabling it to further stretch the value of every barrel it produces to the benefit of ADNOC, its partners and the UAE, creating a range of opportunities for new and existing partners and investors.
The downstream strategy will build on the ADNOC transformation program of the last two years, which focuses on maximizing value by driving operational efficiency, enhancing performance, realigning the management of its portfolio of assets, and introducing a new and expanded partnership and investment model.
Commenting after the Forum, H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said, “As we grow in the downstream, a central pillar of our strategy will be the creation of a global refining and petrochemical growth engine at Ruwais. We are exploring a range of options in Ruwais, including bringing in partners who share our vision to develop new businesses that will accelerate the growth of the complex.
“The expansion and enhancement of our refining capabilities in Ruwais, along with the development of Derivatives and Conversion Parks, are key initiatives aimed at significantly expanding ADNOC’s downstream operations. They will provide the UAE private sector, and international companies, the opportunity to partner with us to build and profit from the extended petrochemical value chain. The entire plan will support the development and diversification of the UAE’s economy, create highly skilled, specialized jobs and contribute to GDP growth.”
ADNOC is now accelerating this transformation by executing its downstream strategy that is aligned with ADNOC’s 2030 strategy of a more profitable upstream, more valuable downstream, more sustainable and economic gas supply, and more proactive, adaptive marketing and trading. ADNOC will look to create long term downstream partnerships, providing access to opportunities across the value chain for both investors and partners.
Bob Dudley, CEO of BP, who was in attendance at the Downstream Investment Forum, commented on ADNOC’s partnership model and the investment opportunities it provides, saying, “Abu Dhabi for us is a strategic partner, it’s a great place to invest…the UAE has great resources to produce, and it exports those, but now it can take them and add more value to every barrel of crude oil and natural gas it produces, turning them into other products, and sending them to the markets. This seems like a natural fit because Abu Dhabi is located at the cross roads of the world, and it’s a really ambitious idea that Abu Dhabi has experience of executing.”
