The Abu Dhabi National Oil Company (ADNOC) is a public-owned oil company of the UAE. ADNOC explores, stores refine, develops and distributes petrochemicals products with the critical objective of innovation about advance the value of Abu Dhabi. ADNOC produces 3.1 million barrels per day, which makes it the twelfth largest oil company and the biggest company in UAE. ADNOC is one of the largest energy companies measured by both production and reserves.
ADNOC has sixteen subsidiary companies in midstream, upstream, downstream stages of production. Onshore and offshore both ADNOC develops the gas fields. Two oil refineries, Ruwais and Umm Al Nar, are operated by ADNOC.
To expand the growth now, ADNOC signs MoUs with OMV, Borealis for downstream collaboration.
The Collaboration Aims to Growth Strategy
An agreement has been initiated with the ambition to expand downstream portfolio as part it's 2030 growth strategy. ADNOC signed two memoranda of understanding (MoUs) along with OMV and one MoU with the Borealis to explore several new opportunities for collaboration in the downstream sector.
OMV and ADNOC agreed to create new opportunities in the petrochemical projects as a potential extension to their partnership, which is already existing and exchange knowledge and experience in refinery petrochemical optimisation and integration. These two companies will assess opportunities for petrochemical marketing support.
The companies also agreed to explore the potential of OMV’s ReOil in Ruwais and ADNOC's petrochemical and refining hub in the Al Dhafra region of Abu Dhabi. Re Oil Recycling process produces synthetic crude oil from used plastics.
The third MoU will also ensure that Borealis and ADNOC explore potential growth opportunities within the integrated polyolefin industry in key geographical markets.
Dr Sultan Ahmed Al Jaber’s View
The Minister of State in the United Arab Emirates, the Director-General and CEO of the Abu Dhabi National Oil Company, Dr Sultan Ahmed Al Jaber’s words upon this matter was "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.’
According to him, this is another stepping stone in the journey to grow a downstream portfolio of ADNOC and establish Ruwais as a global refining and petrochemical hub.
Dr Al Jaber mentioned that he proposed an agreement with Borealis, and also an existing strategic partner, that will potentially crop up growth opportunities. For the mutual profit and ensure that they are well-positioned to meet the expanding demand for several high-value refined and petrochemical products.
ADNOC and OMV collaborate in many areas across the full value chain from upstream and downstream. OMV gathered a fifteen per cent share in ADNOC refinery in a transaction that values ADNOC refining at a value of 19.3 billion dollars.
This won an award by ADNOC to OMV in December 2018 of a five per cent stake in the Ghasa ultra-sour gas adjustment for forty years and in April 2018, twenty per cent stake in the SARB and Umm Lulu oil fields offshore concessions.
From 1998, Borealis and ADNOC have combined as joint venture partners in Borouge.
3 Crucial Steps for Your Company to work with ADNOC
Gather Supreme Petroleum Council approval
Register as a vendor for ADNOC
Get certified for ADNOC's in-country value scheme
Steps for Setting up Oil Business in Abu Dhabi
There are few steps to setup Oil company in Abu Dhabi. The steps are as follows.
- Keep an eye on the trade names and authority to establish as the trademark
- Determine on the foremost activities for the proposed entity
- Obtain Trade License
- Open a bank account by the name of the company
- Documentation formalities are crucial for granting first-stage approvals.
- Check the legal form of the entity
- Register at Immigration and Labour Department
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