April 29, 2022
Sultan Al Jaber, CEO of ADNOC
The Abu Dhabi National Oil Company (ADNOC) announced on Friday that it had signed a “strategic deal” with the UAE’s Mubadala Investment Company, according to which it will acquire Mubadala’s 25% stake in the Austrian petrochemical company Borealis AG.
Financial details related to the deal were not disclosed.
Sultan Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC, said: “We are pleased to announce that Abu Dhabi Petroleum Company has acquired a 25 percent stake in Borealis, the world’s leading petrochemical company, with which we have a close partnership and cooperation relationship spanning two decades through Borouge. for polyolefins in Abu Dhabi.
Al-Jaber added: “ADNOC will become a shareholder in Borealis, along with OMV, as this investment will give additional impetus to our growth program at the local and international levels in the petrochemicals and industrial sectors and accelerate our transformation into a global and integrated player in the energy field.”
With this agreement, Borealis will be 25% owned by ADNOC and 75% owned by OMV, the Vienna-listed multinational integrated oil, gas and petrochemical company.
The deal comes as part of ADNOC’s efforts to open up new markets in Europe, especially in refining and petrochemicals, as Europe seeks to diversify supplies away from Russian fuel in the wake of the Russian invasion of Ukraine.
global provider
Borealis is a global provider of advanced and circular polyolefins solutions and is a European market leader in the manufacture of basic chemicals, fertilizers and mechanical recycling of plastics.
picture released, Getty Images
Nord Stream’s project to deliver Russian gas to Germany was halted after the invasion of Ukraine and prompted Europe to search for alternatives.
ADNOC is seeking to take advantage of growth opportunities in the chemicals and petrochemicals sector, by relying on its world-class refining and petrochemical facilities in the Ruwais Industrial City in Abu Dhabi, which includes the recently announced fourth expansion project, “Borouge 4”, and the industrial chemicals area within the “Enhancing” system. “.
Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO of Mubadala, said: “We have worked with OMV and ADNOC in a two-decade partnership with Borealis, which contributed to its development into a world leader.”
He added: “Throughout this period, Borealis has been a source of pride for us with its growth and achievements in innovation, and its continued success in the field of sustainability. We now see the opportunity for OMV and ADNOC to lead the company in the next phase, to push it to Further growth and progress by benefiting from the expertise of the group of companies affiliated to the “ADNOC” portfolio.
ADNOC said that the deal is another important achievement for it as part of its efforts to accelerate the implementation of its growth and expansion program in refining, petrochemicals and industrial operations, and to expand and strengthen its long-term partnership with Borealis.