The Abu Dhabi National Oil Company (ADNOC) has signed two Memorandum of Understandings (MoUs) with OMV and one with Austria-based Borealis to explore new opportunities for collaboration in the downstream sector.
Under the terms of the MoU between ADNOC and OMV, both the companies would evaluate new opportunities in petrochemical projects as a potential extension to their existing partnerships. Besides, they will exchange knowledge and experience in refinery-petrochemical integration and optimization.
ReOil recycling process is designed by OMV to produce synthetic crude oil from used plastics. Under the second agreement, both the companies would explore the potential of ReOil technology at Ruwais, ADNOC’s integrated refining and petrochemicals hub in the Al Dhafra region of Abu Dhabi, along with assessing opportunities for petrochemicals marketing support.
ADNOC and OMV already have a partnership in several areas across the full value chain from upstream to downstream. In January, OMV acquired a 15% stake in ADNOC refinery.
Jaber said: “The agreements with OMV build on, and further strengthen, our long-term partnership across the full oil and gas value chain. OMV brings world-class expertise and advanced technology that will enable us to further stretch the value of our crude and secure greater returns from the global growth in demand for petrochemicals as we accelerate delivery of our 2030 smart growth strategy.
“This is yet another stepping stone in our journey to grow ADNOC’s downstream portfolio and establish Ruwais as a global refining and petrochemicals hub.”
The MoU signed between ADNOC and Borealis will see joint exploration of potential growth opportunities by the two companies within the integrated polyolefin industry in key geographical markets.
Since 1998, ADNOC and Borealis have collaborated as joint venture partners in Borouge, a petrochemicals company that offers innovative plastics solutions for several industries, with 4.5 million tons of annual capacity.
Al Jaber said: “In line with our downstream expansion strategy, ADNOC is pursuing investments that will maximize value from our existing resources and secure more effective market access for our expanding portfolio of products.
“The proposed agreement with Borealis, an existing strategic partner will potentially create growth opportunities for our mutual benefit, and ensure we are well positioned to meet the growing demand for a variety of high-value refined and petrochemical products.”