The Abu Dhabi National Oil Company (ADNOC) is making smarter use of capital to fund an ambitious growth plans and accelerate delivery on the goals of its 2030 strategy, according to HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.
Speaking at the Global Financial Markets Forum, HE Dr Al Jaber said ADNOC is seeking to work more closely with the financial markets as it delivers its 2030 smart growth strategy, in response to a fast evolving economic and energy landscape. HE Dr Al Jaber made his comments during a panel discussion entitled ‘Abu Dhabi’s transformation journey’. “We are making smarter use of our capital and will work with the financial markets as we proactively manage our portfolio of assets and capital to further unlock value from within ADNOC.”
ADNOC’s engagement with the financial markets is an example of the new strategic partnership model the company is implementing. While ADNOC continues to appreciate all its partners, from East to West, he said, ADNOC’s new approach is centred on strategic relationships that deliver growth opportunities, market access, smart capital and strategic value add, Al Jaber said.
He cited ADNOC’s issuance of a $3 billion bond, backed by the Abu Dhabi Crude Oil Pipeline, and the partial listing of ADNOC Distribution, as examples of how ADNOC is taking a new, more dynamic approach to managing its assets and capital, adding that while ADNOC, as a holding company, would remain government owned, there will be a further co-investment opportunities, for those who recognise the mutual benefits in partnering with it.
Confirming plans for significant downstream investments, over the next five years, Al Jaber said ADNOC is committed to becoming a leading global downstream player, through an ambitious domestic and international investment strategy, aimed at capitalising on growth markets. HE Dr Al Jaber said ADNOC plans to build on the strong foundation it has created in Ruwais to develop the world’s largest integrated refining and chemical site, tripling petrochemicals production capacity to 14.4 million tonnes by 2025.
Inviting the financial community to join ADNOC on its journey and support its efforts in driving efficiency, enhancing performance and embedding a commercial mindset across its business, Al Jaber stressed ADNOC’s downstream expansion would introduce new business and investment opportunities to a new category of investors, with a diverse range of growth, risk profiles, returns and yield. “There will be a mixture of equity and debt investment opportunities, including listed and private equity, fixed income, infrastructure as well as structured and project finance, for greenfield and brownfield projects.”
As part of ADNOC’s downstream expansion strategy Al Jaber confirmed that the company is in discussion with several potential partners, that offer new technologies, expertise and skills and who are attracted by ADNOC’s long history of successful partnerships and the long-term consistency, security and stability of the UAE business environment.
ADNOC’s Group CEO said the company is also taking steps to increase the spill over impact on the UAE economy from its smart investments, through its in-country value strategy. This will expand domestic sector involvement across ADNOC’s value chain; create job opportunities, especially in the private sector; improve technology transfer and ultimately enhance the UAE private sector’s competitiveness, by driving improved efficiencies and better performance. In addition, ADNOC’s focus on in-country value will encourage international partners to work more closely with local SMEs to maximise the use of local products, manufacturing and assembly facilities, services and local infrastructure.