Adnoc to buy 24.9% stake in Austria’s OMV

Abu Dhabi National Oil Company (Adnoc) on Wednesday said it will acquire 24.9 per cent of Austrian oil and gas group OMV as part of the group's expansion plan in international markets.

The Abu Dhabi-based group said it is acquiring Mubadala’s entire OMV stake in a transaction that “marks the next major milestone for Adnoc as it accelerates its ambitious domestic and international chemicals growth strategy.

"Mubadala’s stake in OMV is valued at about $4.1 billion," according to Refinitiv data.

Expanding global footprint

The deal, which is subject to regulatory approvals, will also increase Adnoc’s holding in both European petrochemicals maker Borealis and Abu Dhabi-listed petrochemicals company Borouge.

"Adnoc will own 24.9 per cent of OMV, Osterreichische Beteiligungs AG (OBAG), an Austrian independent holding company, holding 31.5 per cent, with the remaining share capital in free float. Through this investment in OMV, who hold a 75 per cent stake in Borealis, Adnoc will increase its shareholdings in both Borealis and Borouge, bolstering its footprint in the chemicals sector," Adnoc and and Mubadala Investment Company said in a joint statement on Wednesday.

The Abu Dhabi-based energy giant has been flexing its muscles, taking on international oil companies and Gulf rivals in its pursuit of energy assets outside the UAE. The transaction marks the next major milestone for Adnocas it accelerates its ambitious domestic and international chemicals growth strategy and also aligns with Mubadala’s long-term investment strategy.

A separate statement from state-owned Austrian holding company Osterreichische Beteiligungs AG (OBAG) said that Adnoc would become a long-term strategic partner in all areas of OMV’s business.

A milestone transaction

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, said Adnoc is delighted to be acquiring a 24.9 per cent stake in OMV.

"As we continue to meet the growing global demand for lower carbon energy, we are fast-tracking the delivery of our growth strategy and expanding our footprint across key strategic markets and sectors. This milestone transaction, alongside our 25 per cent shareholding in Borealis, is testament to our focused investment in building an integrated chemicals platform to accelerate our ambitious growth strategy that will unlock significant growth opportunities across our broader chemicals portfolio, with a particular focus on creating distinctive value for Borouge and its shareholders,” Dr Jaber said.

Adnoc last month received board approval for $150 billion of spending over 2023-27 for its accelerated growth strategy and creation of a new division focused on low-carbon solutions and international growth.

Developing an energy champion

Khaldoon Khalifa Al Mubarak, managing director and Group CEO, Mubadala, said Mubadala has had a longstanding relationship with "our Austrian partners, and we have worked together" to develop a champion in the energy sector, OMV.

"This transaction is reflective of our strategy to monetise assets at the right valuation and at the right time," he said.

"2022 has been a year of increased activity and strategic investment across Mubadala, in sectors and geographies all over the world. We will continue to partner with best-in-class entities as we diversify our investment base and expand our growth trajectory,” he said.

Adnoc Logistics, AG&P sign 11-year charter deal

Meanwhile, the maritime logistics arm of Adnoc and Singapore-based Atlantic, Gulf and Pacific (AG&P) have signed a charter agreement to use a liquefied natural gas (LNG) carrier as a floating storage unit in India.

The LNG carrier is owned by Adnoc Logistics & Services (Adnoc L&S). It will be used at AG&P’s LNG import terminal in India which will be commissioned in the second half of 2024, according to a statement by AG&P on Wednesday.

The agreement is valid for 11 years with the option of a four-year extension, and is the third agreement signed between the two companies for a floating storage unit lease in India and the Philippines.

The statement added that an AG&P subsidiary called GAS Entec would convert the LNG carrier to a floating storage unit, while its operations and maintenance will be undertaken by Adnoc L&S.

The floating storage unit will be moored alongside a regasification unit, and the integrated terminal will have an initial capacity of 5 million tons per annum (mtpa).

An official at AG&P said earlier in December that the company aimed to set up its first LNG terminal in India by the end of 2024.

— With inputs from Reuters

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