The Austrian oil and gas group OMV acquires a 2.5 billion dollar share of 15 percent in the refining of ADNOC in Abu Dhabi, as well as an equal participation in a commercial alliance to establish. The agreement was signed by the CEO of OMV Rainer Seele in Abu Dhabi with the Director General of ADNOC, Sultan Ahmed Al Jaber. The firm also attended the Minister of Finance Hartwig Löger (ÖVP) and the inheriting prince Sheikh Mohammed bin Zayed Al Nahyan.
Below this article you will find a graphical vision of the participation.
With the entry to refinement of ADNOC in Abu Dhabi, OMV increases its refining capacity and its petrochemical capacity by 40% by 40%. The current agreement will increase the annual OMV transformation capacity by 7.1 million tonnes, and the smallest refinery in the OMV portfolio, Burghausen, will reach 3.8 million tonnes. "We have added almost twice the house of the castle," said the head of OMV Rainer soul.
"This refinery is logistically correct in the center between the Asian market and the European market, but it also serves the African market," said Seele on Sunday at APA. It exports 70 percent of the capacity of this refinery. 30 percent is used for internal consumption, in particular to provide the Borouge joint venture with petrochemical products. Borouge owns the Borealis chemical corporation, where OMV has another 36 percent. The processing capacity of the entire refinery, in which OMV participates now, is 922,000 barrels per day, "this is almost all the crude oil that currently produces Libya."
The closing of the transaction is expected in the third quarter of 2019, but retroactively on January 1, 2019, Seele told APA. The transaction will have a positive effect on the result of OMV already in the first year. "We will consolidate these investments for their net worth, that is, they will not be included in our books at all levels, but we will essentially have the result of the investment and we expect a two-digit return from our invested capital" .
OMV intends to use its cash flow to finance the acquisition. "Last year, OMV made more than $ 2 billion in acquisitions," said Seele, "that we have been able to fully finance the cash flow, which may not be successful every year, if we have More funding needs then we place appropriate bonds. " But this will only be decided in the coming months.
The total value of OMV's stake is estimated at $ 2,900 million, including approximately $ 400 million in net debts. At the same time as OMV, the Italian energy company Eni has acquired a 20 percent stake, so that ADNOC will maintain the remaining 65 percent after the closure.
ADNOC had already announced that it would spend an average of $ 1.9 billion in the downstream industry over the next five years. "This, of course, represents a 15 percent stake in OMV," said Seele.
Emirate of the Gulf Abu Dhabi is next to the Republic of Austria the second main shareholder of OMV. "OMV's entry to the ADNOC refinery today will further strengthen our good and bilateral relationship with Abu Dhabi," said Swiss Federal Chancellor Sebastian Kurz (ÖVP) after the announcement. of the deal. For the soul there is no better paradise in the region than Abu Dhabi, where we have the political security and the extremely good relations between the Republic of Austria and Abu Dhabi that we can trust and we are not just a business executive with this investment. but also an option to grow here, both in the refinery and petrochemical sectors. "
Seele has set the goal of further reducing costs to the Abu Dhabi refinery. "OMV has led the leadership in Europe".
In addition to the Republic of Austria, Emirate of the Gulf of Abu Dhabi is the second largest shareholder in OMV and holds 24.9 percent of the shares. 31.5 percent belongs to the Austrian State that has ÖBIB, which is currently converted into ÖBAG. A year ago, OMV had announced it would grow in the coming years, especially in the Middle East. Abu Dhabi is the logical partner.
OMV plans billions of investments in Norway >>
The employees of the petroleum industry obtain 3.4% more >>
A strong support is received at the head of OMV for its expansion plans in the Austrian policy. At the end of April, federal chancellor Sebastian Kurz (ÖVP) and the finance minister Margarete Schramböck (also ÖVP) traveled to the UAE (United Arab Emirates) with a high commercial delegation rank At that time, OMV announced its 20% stake in two oil fields of the $ 1.5 billion (1.3 billion euros) ADNOC oil tanker.
Also with the signing contract for the acquisition of a 15 percent stake in the ADNOC refinement for $ 2,500 million he met with Finance Minister Hartwig Löger (ÖVP) , a senior government representative of Austria.
OMV is also represented in Abu Dhabi through its 36 percent stake in the chemical corporation Borealis, which owns 64 percent of the Mubadala state fund.
The entry to refinement of the ADNOC increases OMV's refining capacity by 40% only once. The capacity of the OMV refinery in Schwechat (Austria), Burghausen (southern Germany) and Petrobrazi (Romania) currently amounts to 17.8 million tonnes per year. The OMV amount to the Abu Dhabi refinery that is now purchased equals 7.1 million tonnes.
In the long term, OMV aims to almost double refining capacity. (Apa / red)