Abu Dhabi National Oil Company (ADNOC), UAE’s biggest energy producer, is seeking Indian companies for partnership in its ambitious USD 45 billion downstream petrochemical expansion plans. ADNOC CEO Sultan Ahmed Al Jaber, along with global energy chief executives had a virtual session with India’s Prime Minister during the India Energy Week held earlier this week.
A company statement from ADNOC said the company sought opportunities to strengthen the UAE-India energy relationships. ADNOC has launched an ambitious plan to expand its chemicals, petrochemicals, derivatives and industrial base in Abu Dhabi. The company is exploring partnerships with more Indian companies across its hydrocarbon value chain.
In 2018, ADNOC had unveiled plans to invest $ 45 billion with partners to develop its local downstream activities, including the expansion of its Ruwais refinery and petrochemical capacity in the industrial hub. The company has courted international investors to expand its oil and gas production and monetise its assets. “India’s remarkable growth as an economic power has cemented its place as one of the world’s largest energy consumers,” said ADNOC CEO Sultan Ahmed Al Jaber.
ADNOC was the first foreign company to hire space at the underground crude oil storage India has built as an insurance against supply and price disruptions. “In the past two years, ADNOC has enhanced its strategic energy links with India a key growth market for crude, refined and petrochemical products. In addition to its partnership in the strategic reserves program, ADNOC is also a stakeholder in one of India’s largest refinery and petrochemical projects, to be constructed on India’s west coast,” he said.
ADNOC along with Saudi Aramco have together taken a 50 per cent interest in the massive 60 million tonnes a year refinery-cum-petrochemical complex planned on Maharashtra coast at a cost of $ 44 billion. Indian companies have steadily increased their participation in the UAE’s energy sector.
In March 2019, a consortium of two Indian oil companies were awarded the exploration rights for an onshore block in Abu Dhabi. This followed a 10 per cent participating interest in Abu Dhabi’s offshore Lower Zakum Concession to ONGC Videsh Ltd (OVL) and its partners Bharat PetroResources Ltd (BPRL) and Indian Oil Corp (IOC) for a sum of $ 600 million.