Abu Dhabi National Oil Company (ADNOC) has signed a memorandum of understanding (MoU) with Austria’s OMV AG to explore opportunities for cooperation in the oil refining and petrochemical sector, according to a statement.
Under the MoU, both parties will collaborate on new downstream projects, refining operations, refinery-petrochemical integration and optimisation, technical and maintenance support.
His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and the Austrian Federal Chancellor H.E. Christian Kern witnessed the signing of the MoU between Adnoc and OMV on May 25.
The agreement explores potential opportunities to work together to support ADNOC’s downstream businesses and the company’s smart growth strategy.
The agreement was signed by H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of ADNOC, and Rainer Seele, CEO of OMV.
The agreement provides for cooperation in a number of areas, including the evaluation of opportunities in downstream projects; the exchange of knowledge and experience in refining operations and refinery-petrochemical integration and optimisation, and downstream technical and maintenance support.
“This agreement provides the opportunity to work with OMV to identify areas for mutual collaboration that will contribute to our plans to maximise the value from our assets and operations. It will provide access to the in-depth knowledge and experience of OMV, in refining operations and petrochemicals, enhancing our own experience and skills, as we focus on delivering the company’s strategic objectives,” said Al Jaber.
“ADNOC has a rich history of working with partners to unlock opportunities in both its upstream and downstream operations. Such partnerships will continue to be an important enabler and we see exciting opportunities ahead. We look forward to working with companies such as OMV to realise our ambitious goals.”
ADNOC’s 2030 Strategy is transforming the company into a commercially minded, performance-based organisation, which is focused on maximising the value from every barrel of oil and delivering the greatest possible return to Abu Dhabi. It will ensure a more profitable upstream; a more valuable downstream and a more sustainable and economic gas supply.
“Together with ADNOC we have the opportunity to expand our cooperation across the entire value chain: From upstream to downstream, including petrochemicals. We will have a close exchange of expertise that will enable us to make our outstanding, long-term partnership with ADNOC even stronger,” said Seele.
Under ADNOC’s 2030 Strategy, crude production capacity is set to increase to 3.5 million bpd by 2018, while it also plans to expand its sour gas production, from its Al Hosn facility, by 50%. ADNOC has also placed significant focus on its downstream business with plans to double crude refining capacity and triple the production of petrochemical and higher value products.