POST Online Media Lite Edition


ADNOC seals $5.8 billion refining and trading deal with ENI, OMV

Staff Writer |
Eni and OMV have agreed to pay a combined $5.8 billion to take a stake in Abu Dhabi National Oil Company's (ADNOC) refining business and establish a new trading operation owned by the three partners.

Article continues below

The transaction, which expands ADNOC's access to European markets, furthers Eni's diversification away from Africa and gives OMV a downstream oil business outside Europe. It was hailed as a "one of a kind" deal by ADNOC's Chief Executive Sultan al-Jaber.

"The whole oil and gas industry hasn't seen a transaction of this size and sophistication," he said.

Under the agreement, Eni and OMV will acquire a 20 percent and a 15 percent share in ADNOC Refining respectively, with ADNOC owning the remaining 65 percent, the three companies said in statements on Sunday.

The partners will own the same proportions of the joint trading venture, they added.

OMV said that it would pay around $2.5 billion, while Eni said it would pay around $3.3 billion, giving ADNOC Refining, which has a total refining capacity of 922,000 barrels per day, an enterprise value of $19.3 billion.

What to read next

Abu Dhabi National Oil awards Spain's Cepsa 20-percent offshore concession
ADNOC announces $5 billion investment plan
Baker Hughes acquires 5 percent of ADNOC Drilling for $550 million