Eni, OMV buying ADNOC Refining interests

Eni SPA and OMV AG will buy interests in ADNOC Refining at prices that Abu Dhabi National Oil Co. said establishes the enterprise value of its refining subsidiary, with its 922,000-b/d of refining capacity, at $19.3 billion.

Eni will acquire a 20% interest for about $3.3 billion after deduction of net debt and adjustments, making the enterprise value of its share about $3.9 billion.

OMV will pay an estimated $2.5 billion for a 15% stake with an enterprise value estimated at $2.9 billion.

ADNOC retains the remaining interest. The company signaled the sale of downstream interests in mid-2017, when it announced plans to expand partnerships across its oil and gas operations (OGJ Online, July 10, 2017).

ADNOC Refining operates the Ruwais East, Ruwais West, and Abu Dhabi refineries. The high-conversion Ruwais complex is integrated with petrochemical facilities able to produce 1.5 million tonnes/year of propylene.

The purchases will increase global refining capacities by 35% for Eni and by 40% for OMV.

ADNOC Refining plans to expand refining capacity at Ruwais, now a combined 817,000 b/d, with the addition of a 600,000-b/d refinery and to expand petrochemical capacity at the complex (OGJ Online, Sept. 19, 2018).

ADNOC, Eni, and OMV also agreed to form a trading joint venture, Abu Dhabi Global Markets, expecting to begin physical and derivative trading as early as 2020.

“The trading joint venture will help guide ADNOC Refining’s activity and operational decision-making, ensuring ADNOC secures the best possible value from its refining and trading activity,” ADNOC said in a press release. “The stated objective of the trading joint venture is to expand its global presence over time.”