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Home / Business / REFILE UPDATE The 1 UAE oil company ADNOC plans to invest USD 45 billion in downstream expansion

REFILE UPDATE The 1 UAE oil company ADNOC plans to invest USD 45 billion in downstream expansion



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* ADNOC Presents Downstream Expansion Strategy

* Target of Doubling of Refinery and Triple Petrochemistry

* Plans to Increase Ruwais Refinery Capacity to 1.5 Million Barrels

* Targeting Investments Abroad To Secure Greater Market Access

By Rania El Gamal

ABU DHABI, May 13 (Reuters) – Abu Dhabi National Oil Company (ADNOC) plans to spend $ 45 billion over the next five years Dollars for expanding its refineries and petrochemicals invest operations, it said on Sunday.

The state oil giant is seeking to double its refining capacity and triple petrochemical production potential by 2025 to open up new growth markets, ADNOC chief Sultan al-Jaber told Reuters Saturday.

On Sunday, al-Jaber presented ADNOC's downstream expansion strategy at an industry conference in Abu Dhabi, alongside CEOs of oil companies such as BP, Total and Eni, who have secured long-term oil production in the UAE, an important member of Gulf OPEC.

At the heart of the ADNOC strategy is the Ruwais industrial complex, which ADNOC aims to make the world's largest integrated refinery and petrochemical complex, Al-Jaber said at the conference.

ADNOC plans to expand refinery and petrochemical operations in Ruwais with a third refinery designed to increase capacity by 600,000 barrels per day (bpd) by 2025, bringing the total refinery potential to 1

.5 million barrels per day becomes.

"We invite existing and new partners to join us in building a world-class refining and petrochemical complex and manufacturing ecosystem here in Ruwais," said Al-Jaber.

The company, a major producer in the Middle East, pumping around 3 million barrels a day, will also invest overseas to secure access to growth markets, it said Sunday.

The traditionally conservative national oil company has turned its business upside down since al-Jaber's appointment as CEO in 2016 after being overshadowed for years by its neighbors Saudi Aramco.

Now ADNOC is trying to become more competitive, with its downstream layer focusing on Asian markets where oil demand is still growing.

The company listed 10 percent of its fuel sales business at the end of last year, set up a new trading unit for crude oil and refinery products and expanded partnerships with strategic investors.

This year saw the conclusion of 40-year concession contracts for offshore oil fields with Western oil companies and Asian buyers.

"Everything we do here is designed to make sure we are working efficiently," Al-Jaber told Reuters, adding that it intends to maximize the value of each barrel produced.

The company said in November that it plans to spend more than $ 109 billion over the next five years to increase gas production and invest in international downstream activities. On Saturday, India's oil minister told Reuters that there is a consensus between Saudi Aramco, ADNOC and Indian companies to form a joint venture for India's Ratnagiri oil refinery.

(Reporting by Rania El Gamal Editing by David Goodman)


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