Triple bypass

29 January 2019 By George Hay Follow @gfhay

The emirate has sold 35 pct of its oil group’s refining arm to two European producers. Italy’s Eni gets to offset a heavy reliance on exploration, while Austria’s OMV gets non-European refining. Abu Dhabi hedges its dependency on crude by turning crown jewels into cash.

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Italy’s Eni and Austria’s OMV on Jan. 27 signed an agreement to pay a combined $5.8 billion to buy a stake in the refining business of state-owned Abu Dhabi National Oil Company (ADNOC). Eni and OMV will pay around $3.3 billion and $2.5 billion to acquire a 20 percent and a 15 percent share respectively in ADNOC Refining, with ADNOC owning the remaining 65 percent.

ADNOC’s refining business has a total refining capacity of 922,000 barrels per day, an enterprise value of $19.3 billion, according to a Reuters report, and it includes the fourth-largest single-site refinery in the world, the Ruwais facility.

The trio will also establish and jointly own a new trading operation.

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