Abu Dhabi National Oil Company (ADNOC) and “Holding” signed a joint venture agreement yesterday 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 capabilities 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 His Excellency Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, CEO of Abu Dhabi National Oil Company (ADNOC) and its group of companies, and Mohammed Hassan Al Suwaidi, CEO of «Holding».
According to the agreement, “ADNOC” and “Holding” will evaluate and implement joint investments in a group of projects in the field of chemicals. ADNOC holds a majority stake in the joint venture by 60%, while Holding Company holds a 40% stake.
“ADNOC” and “Holding” will conduct a comprehensive feasibility study to develop specific projects in Ruwais and cooperate in the implementation of 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 targeted projects and opportunities for investors and new partners.
His Excellency Dr. Sultan Al Jaber said: In line with the directives of the rational leadership to build smart partnerships that achieve the maximum possible value from the assets of “ADNOC” 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 the value of every barrel of oil we produce Establishing Abu Dhabi as a leading global destination for international investors and industry and technology partners.
He added: «We are pleased to sign the agreement with« Holding »to benefit from the fields of coordination, integration and unification of efforts and from the competitive advantages, great resources and varied experiences provided by the two companies to build a new investment platform for petrochemicals that will enhance the value of our assets in Ruwais and develop the sector of the petroleum and chemical derivatives industry in the country, and the transformation of Ruwais To a world industrial center, creating more new business opportunities and attracting foreign direct investment. ”
Mohamed Hassan Al Suwaidi, CEO, told «Holding»: The partnership with ADNOC in the project to develop the Ruwais Petrochemical Complex will give us an opportunity to contribute effectively in cooperation with the government and private sectors, to provide the basic infrastructure for this distinctive project.
This partnership clearly embodies the support model that the 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 such as Abu Dhabi Ports, Abu Dhabi Energy Corporation, Etihad Rail Company, and Hadeed Emirates, 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 it announced at the ADNOC Forum to invest in this field in 2018. Since then, ADNOC has been able to attract large foreign investments and expand its partnerships in the areas of Refining, fertilizers and pipeline infrastructure assets.
ADNOC 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 refine other types of crude alongside Murban crude and provide additional options To export crude oil.
Borouge, the joint venture between ADNOC and Borealis, has also made significant progress in the raw material production units of the Borouge 4 plant, which is considered one of the main capabilities of the Ruwais Petrochemical Complex and support projects.
«Holding» owns a diversified portfolio of companies and projects that include a number of key sectors, including logistics services, local and international transport, 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 raw materials The core of the hydrocarbon fuel is at the Ruwais complex, and forging closer ties with international partners and investors.
“ADNOC” and “Holding” have a proven track record in promoting private sector growth in Abu Dhabi. The ADNOC program to enhance local added value has contributed to redirecting more than 44 billion dirhams to the local economy, and created more than 1500 jobs for UAE nationals in the private sector since its launch in 2018. Holding Holding brings together vital local experiences in various sectors such as energy, logistics and manufacturing It would support the development of the “Ruwais Petrochemical Complex”.
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