With the debt ceiling raised…
Upgrading the global electrical grid…
The Abu Dhabi National Oil Company (ADNOC), the state-held oil company of the United Arab Emirates (UAE), said on Monday that it would be expanding partnerships and possibly list minority stakes in some of its services businesses with attractive growth and investment profiles.
ADNOC, however, stressed that there are no plans for an IPO of ADNOC itself, the group holding company, which will stay wholly owned by the Government of Abu Dhabi. Referring to the potential IPOs of minority stakes in some businesses, the company said that “ADNOC will continue to be a committed, long-term majority shareholder in any businesses that are listed.”
The partnerships that ADNOC will be studying are aimed at maximizing value, increasing revenue growth, optimizing performance, and securing greater access for ADNOC products in key growth markets, the UAE’s company said.
ADNOC will also be looking to deepen its existing partnerships and engage new partners to include, for example, specialist infrastructure and energy investors, long-term global investment institutions, and other energy, services, and petrochemical players, the UAE company said.
“Our new approach comes at a time when global economic growth and energy demand is shifting East. These changes in energy demand sit alongside a rapid increase in demand for products derived from hydrocarbons - petrochemicals, plastics and polymers,” Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said in the statement.
Related: Saudi Reshuffle Could Completely Shake Up Oil Markets
“The ideal partner will bring tangible strategic value to ADNOC, including access to new markets, technical expertise, and a willingness to invest alongside us across our value chain,” Al Jaber noted.
In the upstream segment, ADNOC targets to develop and further expand a fully integrated regional drilling company. In the downstream business, ADNOC plans to expand its petrochemical production from 4.5 mtpa to 11.4 mtpa by 2025. The company’s strategy includes increasing focus and resources to the downstream business, especially to refining, to meet growing demand and increase revenues.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.