These agreements demonstrate a strong partnership between Eni and ADNOC. With this transaction, Eni enters the UAE downstream sector and increases its overall refining capacity by 35%. The company`s strategy is to make Eni`s overall portfolio geographically more diversified and balanced throughout the value chain. The agreement will also study processes and technologies to promote the circular economy – the regenerative economic approach to eliminating waste and using and reusing resources continuously – using the traditional linear approach. CO2 is used to improve the hydrocarbon recovery factor and is stored permanently. “The agreement underscores the adNOCs targeted approach to value-added partnerships that allows us to exploit and maximize the value of Abu Dhabi`s important hydrocarbon resources, while implementing our smart growth strategy for 2030,” said Sultan al-Jaber, Minister of State for the United Arab Emirates and CEO of the ADNOC group, in a statement. In addition, the partners will create a commercial joint venture in which Eni and OMV hold 20% and 15% of the shares respectively. S.E. Dr. Al Jaber said, “We are pleased to sign this strategic framework agreement with Eni, which builds on our successful partnerships on the oil and gas production chain. It is important that the agreement highlights ADNOC`s targeted approach to value-added partnerships, which allows us to leverage and maximize the benefits of Abu Dhabi`s significant hydrocarbon resources, while applying our strategy for smart growth to 2030. We look forward to making this framework agreement a mutually beneficial new partnership with Eni, as this agreement offers considerable potential for exciting and sustainable growth prospects. The agreement values ADNOC Refining with a total refining capacity of 922,000 barrels per day and operates the world`s fourth-largest refinery with an enterprise value of $19.3 billion.
The contracts were signed by His Excellency Sultan Ahmed Al Jaber, Minister of State of the United Arab Emirates and CEO of the ADNOC Group, Claudio Descalzi, CEO of Eni, and Rainer Seele, Chairman and CEO of the OMV. The signing of the agreements was attested by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Commander-in-Chief of the Armed Forces of the United Arab Emirates, His Excellency Giuseppe Conte, Prime Minister of Italy, and His Excellency Hartwig Lager, Federal Minister of Finance of Austria. Adnoc said in a statement that the agreement “builds on Adnoc`s recently announced development goals, in particular its commitment to reduce its greenhouse gas intensity by 25% by 2030.” Abu Dhabi, United Arab Emirates, January 27, 2019 – Eni and ADNOC today signed a share purchase agreement that allows Eni to acquire a 20% interest in ADNOC. The signing of the agreement was attested by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Commander-in-Chief of the Armed Forces of the United Arab Emirates, and by Giuseppe Conte, the Italian Prime Minister. The agreements were signed by His Excellency Dr. Sultan Ahmed Al Jaber, Minister of State of the United Arab Emirates and CEO of the ADNOC Group, and Claudio Descalzi, CEO of Eni. ADNOC also announced today that it has sold a 15% stake in ADNOC Refining to OMV, with ADNOC retaining the remaining 65%. ADNOC, Eni and OMV have also agreed to create a joint venture with the same stake in ADNOC Refining. Abu Dhabi National Oil Company (Adnoc) has signed a strategic framework agreement with the Italian energy company Eni to explore new opportunities for co-operation in Co2 capture and storage (CCUS).