Adnoc explores overseas expansion in downstream business

FILE PHOTO: Cars are seen an ADNOC petrol station in Abu Dhabi. (REUTERS)

LONDON: Abu Dhabi’s national oil company is eyeing overseas expansion as part of a new strategy designed to diversify state assets and boost its status in global markets.
Adnoc chief executive Sultan Al-Jaber said the group is looking at opportunities in the downstream business with a view to gaining long-term access to major markets for the emirate’s rich supply of crude and other products, the Financial Times reported.
“This refreshed downstream approach will reshape Adnoc into a focused global company, with an adaptable product portfolio for shareholders and the broader UAE economy,” Al-Jaber told the newspaper.
The company is also investing in upstream development with plans to raise oil production capacity to 3.5 million barrels a day by 2018.
The Abu Dhabi government has approved a 44 billion dirhams ($109 billion) investment plan to support overseas and domestic expansion, which follows a major shakeup at Adnoc as it looks to improve efficiency, boost international partnerships and expand opportunities for local businesses.
The new partnership model also includes the part-privatization of some areas of the company, which launched an initial public offering of its fuel distribution business that could raise up to $2 billion.