• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 7 hours The United States produced more crude oil than any nation, at any time.
  • 18 hours China deletes leaked stats showing plunging birth rate for 2023
  • 46 mins The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Bad news for e-cars keeps coming
Say Goodbye to Utility Stock Dividends

Say Goodbye to Utility Stock Dividends

The U.S. electric utility sector…

ADNOC Terminates Talks to Buy Into Brazilian Petrochemicals Firm

The Abu Dhabi National Oil Company (ADNOC) has terminated talks to buy a stake in Brazil’s petrochemicals company Braskem from its controlling company Novonor, Braskem said on Monday.

At the end of last year, the state oil giant of the United Arab Emirates (UAE) proposed a non-binding offer to buy a stake in Braskem, in an offer implying an equity value of $2.14 billion (10.5 billion Brazilian reals) for Novonor’s 38.3% stake in the Brazilian company.

The non-binding offer from November was conditional on a satisfactory conclusion of a due diligence process, among other things.

On Monday, Braskem cited in its securities filing a Novonor letter, which said it had been informed by ADNOC that the Abu Dhabi firm was no longer interested in continuing the process and negotiations regarding a possible transaction involving Braskem.  

ADNOC is pursuing deals to expand in international markets, including in petrochemicals, as the major oil producers in the Middle East are keen to expand the markets for their oil and products and lock in future demand.

Petrochemicals are a key driving force of global oil demand. Recent estimates by the International Energy Agency (IEA) have shown that 90% of China’s increased oil demand from 2021 to 2024 comes from chemical feedstocks like LPG, ethane, and naphtha. The IEA notes that between 2019 and 2024, additional Chinese production capacity for ethylene and propylene will exceed the combined current capacities of Europe, Japan, and South Korea.

UAE’s ADNOC entered at the end of 2023 into a binding agreement under which ADNOC would buy OCI’s entire stake in Fertiglobe for $3.62 billion. The deal supports ADNOC’s chemicals growth strategy and its plans to establish a global growth platform for ammonia, the Abu Dhabi company said in December.

Separately, BP and ADNOC suspended earlier this year talks to buy a 50% stake in Israel’s natural gas producer NewMed, due to uncertainty in the region.  

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News