OMV and ADNOC Sign MoU in Presence of Abu Dhabi’s Crown Prince H.H. Sheikh Mohammed Bin Zayed and Austria’s Chancellor H.E. Sebastian Kurz

Source Press Release
Tags Refining & Marketing Activities, Corporate Deals, Deals, Strategy - Chemicals
Date March 23, 2019

Agreements intend to explore potential opportunities in petrochemical projects and in OMV’s ReOil® process.

OMV and the Abu Dhabi National Oil Company (ADNOC) today signed two Memorandums of Understanding to explore new opportunities for collaboration in the petrochemical sector. The signing of the agreements was witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and His Excellency Sebastian Kurz, Federal Chancellor of Austria.

The agreements were signed by H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of ADNOC, and Dr. Rainer Seele, CEO of OMV.

One agreement provides for collaboration in the petrochemical sector, including the evaluation of new opportunities in petrochemical projects as a potential extension to the existing partnerships, as well as the exchange of knowledge and experience in petrochemical operations and refinery-petrochemical integration and optimization. The two companies will also assess opportunities for petrochemicals marketing support.

The second agreement intends to explore potential opportunities for collaboration in the area of OMV’s patented ReOil® process. This innovative process converts used plastics into synthetic crude, which can then be used to produce fuels or feedstock for petrochemical plants, thereby making a significant contribution to a sustainable future. The MoU provides for the establishment of a joint working group that should assess the feasibility of a scalable ReOil® plant in the UAE.

Rainer Seele: “These agreements underline our commitment to the strategic partnership with ADNOC and our readiness to bring expertise and add value to this collaboration. Moreover, we are following our strategy of expanding the value chain and further strengthening our petrochemical business, as well as contributing to CO2 reduction through the circular economy concept of our ReOil process.”

OMV and  ADNOC work together across the value chain in many areas – upstream and downstream. In April 2018,  OMV acquired a 20% interest in the offshore concession for the two SARB and Umm Lulu oil fields, followed in December 2018 by a 5% stake in the Ghasha sour gas and condensate field concession with a term of 40 years. In January this year,  OMV acquired a 15% interest in  ADNOC Refining, which owns the world's fourth largest refinery.

H.E. Al Jaber: “These agreements build on, and further strengthen, our long-term partnership with OMV across the full oil and gas value chain.  OMV brings world-class expertise and advanced technology that will enable us to further stretch the value of our crude and secure greater returns from the global growth in demand for petrochemicals as we accelerate delivery of our 2030 smart growth strategy. This is yet another stepping stone in our journey to grow  ADNOC’s downstream portfolio and establish Ruwais as a global refining and petrochemicals hub.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd