Officials representing Eni

The Abu Dhabi National Oil Company (Adnoc) has signed agreements to offer stakes in its refining arm, Adnoc Refining, to Italian firm Eni and Austria’s OMV for a total consideration of $5.8bn.

Eni will acquire a 20% interest in Adnoc Refining for $3.3bn, while OMV will purchase 15% of the shares for about $2.5bn. Adnoc will retain the remaining 65% stake in the company.

The transaction values Adnoc Refining at an enterprise value of $19.3bn and seeks to expand the company’s access to markets in Africa, Asia and Europe. The business has a total refining capacity of 922,000 barrels per day.

Adnoc Group CEO Dr Sultan Ahmed Al Jaber said: “These innovative partnerships will support our ambition of becoming an international downstream leader with the flexibility to respond quickly to shifting market needs and dynamics. They will help enable our objective of unlocking even more value from every barrel of oil we produce.

“These innovative partnerships will support our ambition of becoming an international downstream leader with the flexibility to respond quickly to shifting market needs.”

“Working closely with our partners, we will also deliver further efficiencies across our operations and improve asset and business performance.”

Adnoc will also establish a trading entity under a joint venture (JV) with Eni and OMV.

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The trading JV will export Adnoc Refining’s products, with export volumes expected to be around 70% of throughput.

Eni CEO Claudio Descalzi said: “This transaction, which allows us to enter the United Arab Emirates’ downstream sector and represents a 35% increase in Eni’s global refining capacity, is in line with our announced strategy to make Eni’s overall portfolio more geographically diversified, more balanced along the value chain, more efficient and more resilient to cope with market volatility.”

Eni and OMV will contribute know-how, operational experience and support towards the development of the trading JV.

The completion of the transaction, which is subject to customary closing conditions and the receipt of regulatory approvals, is expected to take place in the third quarter of this year.