ADNOC: STRATEGIC MOVE DOWNSTREAM

March 09, 2018

The Abu Dhabi National Oil Company (ADNOC) announced its intention to move further downstream, as the company pivots to take full advantage of the rising demand for higher value refined and petrochemical products, particularly in the growth economies of China and Asia.
Speaking at CERAWeek, a leading gathering of the energy industry, H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, set out ADNOC’s strategic ambitions to become a major global downstream player, with the operational flexibility to respond quickly to shifting and emerging market needs. At the center of its new downstream strategy, ADNOC intends to create the world’s largest integrated refining and chemical site in the world, in Ruwais, UAE, where it will triple petrochemicals’ production to 14.4 million tonnes, annually, by 2025. H.E. Dr. Al Jaber explained ADNOC’s downstream strategy will build on the progress ADNOC had made in 2017, as it accelerated its transformation and sharpened its focus on its strategic pillars of people, performance, profitability and efficiency to both unlock and create maximum value from its resources and assets.
In addition to aligning its group of companies under a single, unifying brand, he said ADNOC opened up opportunities across its upstream and downstream businesses to new categories of partners and investors, including public and private financial institutions. ADNOC also took steps to enhance and optimize its capital structure by leveraging, for the first time, the global capital markets, including issuing a US $3 billion bond against one of its large crude oil pipelines – the biggest non-sovereign bond sale in the Middle East – and successfully listing ADNOC Distribution on the Abu Dhabi Stock Exchange (ADX), in what was the largest IPO in Abu Dhabi in a decade. (Source and image: ADNOC/Ruwais refinery)