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ADNOC to sell at least 10% of fuel distribution business in IPO

November 14/2017

MOSCOW (MRC) -- State-owned Abu Dhabi National Oil Company (ADNOC) aims to sell at least 10% of its fuel distribution unit in an initial public offering in Abu Dhabi, as Gulf states step up plans to privatize energy assets in an era of cheap crude, reported Reuters.

The listing details came as Saudi Arabia and Oman are also looking to privatize energy assets as low oil prices squeeze revenues.

Saudi Arabia plans to list 5% of its national oil company Aramco by next year, which Saudi officials say could raise USD100 B, making it the worlds biggest IPO.

At the holding company level, ADNOC will continue to be owned by the Abu Dhabi government, said ADNOC CEO Sultan Ahmed al-Jaber at an energy conference.

"The IPO of ADNOC Distribution represents an important milestone in this new approach and is a natural evolution for the growth and expansion of this exciting retail-focused business," al-Jaber said.

The ADNOC statement confirms a Reuters story in September that said the company could list more than 10% of its fuel retail business.

The transformation of ADNOC is also seen as part of an economic reform drive led by Abu Dhabis Crown Prince Sheikh Mohammed bin Zayed Al Nahyan.

ADNOC produces some 3 MMbbl of oil per day, or around 3% of global production. It also produces more than 9.8 Bcf of raw gas per day, placing it among the largest energy producers in the world.

ADNOC Distribution is the leading fuel distributor in the United Arab Emirates with an approximately 67% market share by number of retail fuel service stations, which stood at 360 by end of September.

As MRC wrote previously, ADNOC plans to almost triple its petrochemical production to an annual 11.4 MMt by 2025 from 4.5 MMt at present, group chief executive Sultan Al Jaber said in November 2016.

ADNOC's petrochemicals are produced by Abu Dhabi Polymers Co (Borouge), which makes polyolefin, and Ruwais Fertilizer Industries (Fertil), which produces urea and ammonia fertilisers.
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, propylene, ethylene, petrochemistry, ADNOC, Borouge, United Arab Emirates (UAE).
Category:General News
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