Abu Dhabi National Oil Company "ADNOC" and "Holding" / ADQ / today signed a joint venture agreement to create a new investment platform for developing, financing and supervising the establishment of industrial projects within the "Ruwais Petrochemical Derivatives Complex" which is one of the main pillars of ADNOC 2030 strategy for smart growth in the field of Refining and petrochemicals, and this step will also support the UAE's growth strategy in the industrial and chemical sector.
The agreement was signed by the Minister of Industry and Advanced Technology, CEO of Abu Dhabi National Oil Company (ADNOC) and its group of companies, Dr. Sultan bin Ahmed Al Jaber, CEO of “Holding” / ADQ / Mohammed Hassan Al Suwaidi.
According to the agreement, ADNOC and ADQ / Holding will evaluate and implement joint investments in a range of projects in the chemical field. ADNOC holds a majority stake in the joint venture by 60%, while "Holding" / ADQ / owns a 40% stake.
ADNOC and ADQ Holding will conduct a comprehensive feasibility study to develop specific projects in Ruwais and cooperate in implementing projects that have great potential to create and enhance value. It is planned to announce the results of this study before the end of 2020, including details of the targeted projects and opportunities for investors and new partners.
Dr. Sultan bin Ahmed Al Jaber said - on this occasion -: "In line with the directives of the rational leadership to build smart partnerships that achieve the maximum possible value from ADNOC's assets in various fields of its business, this joint project comes to confirm the company's commitment to smart and responsible investment, and to reflect our constant focus on enhancing value From every barrel of oil we produce and establish Abu Dhabi as the leading global destination for international investors and industry and technology partners. "
He added: "We are pleased to sign this agreement with" Holding "/ ADQ / to benefit from the fields of coordination, integration and unification of efforts and from the competitive advantages, great resources and varied experiences provided by each of the two companies to build a new investment platform for petrochemicals that will enhance the value of our assets in Ruwais and develop the derivative industry sector Petroleum and chemical in the country, transforming Ruwais into an international industrial center and creating more new business opportunities and attracting foreign direct investment. "
For his part, Mohamed Hassan Al-Suwaidi, CEO, Holding Company / ADQ / said: “Partnership with ADNOC in the development project for the“ Al-Ruwais Petrochemical Complex ”gives us the opportunity to contribute effectively in cooperation with the government and private sectors, to provide the basic infrastructure for this project Featured.
This partnership clearly embodies the support model that ADQ Holding can provide to drive efforts to create value and build a prosperous economy in the Emirate of Abu Dhabi, through our diverse portfolio that includes a group of leading companies in the emirate such as Abu Dhabi Ports, Abu Dhabi Energy Corporation, and Etihad Rail, Emirates Iron Company, Ducab and Arkan. ”The development of the petrochemical derivatives industry in Ruwais represents the cornerstone of ADNOC's growth strategy in the field of refining and petrochemicals which was announced at the ADNOC Investment Forum in this field in 2018. Since then, ADNOC has been able to attract investments It has also made significant progress in large-scale projects in Ruwais to increase the value of every barrel of oil it produces, including the crude oil resilience project, and the ADNOC Refinery modernization program that will enable it to Refining other types of crude along with Murban crude and providing additional options for exporting crude oil.
Borouge, the joint venture between ADNOC and Borealis, has also made great progress in the raw material production units of the "Buruj 4 Plant", which is considered one of the main capabilities of the Ruwais Petrochemical Complex and support projects.
ADQ Holding owns a diversified portfolio of companies and projects that cover a number of key sectors, including logistics services, local and international transportation, energy, water, manufacturing and other basic and enabling infrastructure services, which contributes to strengthening ADNOC's leading position in the field of manufacturing and providing materials The primary raw hydrocarbon fuel in the Ruwais complex and closer ties with international partners and investors.
The common strengths will also contribute to enhancing and increasing the total value of the petrochemical derivatives complex that ADNOC is working to establish in the Ruwais complex, which will support the growth and establishment of a wide variety of industries in the Ruwais complex in the long term and provide more investment opportunities in the Emirate of Abu Dhabi.
ADNOC and ADQ Holdings have a proven track record in promoting private sector growth in Abu Dhabi. The ADNOC program to enhance the local added value has redirected more than 44 billion dirhams / 12 billion US dollars to the local economy and created more than 1500 jobs for UAE nationals in the private sector since its launch in 2018 until now. "Holding" / ADQ / brings together vital local experiences in various sectors such as energy, logistics and manufacturing, which will support the development of "Al-Ruwais Petrochemical Complex".
After completing the required approvals, the new joint venture will be registered in the Abu Dhabi Global Market, provided that the two companies together define the joint venture board and team, in line with global best practices of corporate governance.
In line with its integrated strategy for smart growth 2030, ADNOC continues to implement its plans to expand its business in the field of refining and final petrochemicals, which will witness the transformation of the Ruwais industrial complex into a complex of chemical and petrochemical industries capable of competing globally, by taking advantage of the distinguished geographical location of the UAE near growth markets Global, provides primary raw materials at competitive prices, integrated facilities and services, as well as the attractive financial and regulatory environment in Abu Dhabi.