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OMV, state-owned, buys $ 2.2 billion in Arab refineries



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OMV, state-owned, buys $ 2.2 billion in Arab refineries

VIENNA / ABU DHABI. The Austrian oil and gas group OMV acquires a 15% share of 2.5 billion dollars (€ 2.2 billion) in the refined company Adnoc, a longtime member of the OMV.


OMV, state-owned, buys $ 2.2 billion in Arab refineries

The seaside location is the fourth largest refinery in the world and employs 4,700 people. Image: (Adnoc)

To this end, the local national company participates in a newly created commercial company with Adnoc. When entering the refining of Adnoc, OMV increases its refining capacity and petrochemical capacity by 40% by 40%. The annual processing capacity of crude oil is increasing by 7.1 million tonnes. "We have added Burghausen almost twice," said CEO of OMV, Rainer Seele. Currently, the capacity of the OMV refinery in Schwechat (Austria), Burghausen (southern Germany) and Petrobrazi (Romania) is 17.8 million tonnes per year.

"This refinery is logistically in the center between the Asian market and the European market, but it also serves the African market," said Seele on Sunday. 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, is 922,000 barrels per day, "this is almost all the crude oil that currently produces Libya," says Seele.

The final closing of the transaction is expected in the third quarter of 2019, but with retroactive effect as of January 1, 2019. The participation will have a positive effect on the result of the OMV already in the first year. OMV will only have the result of investing in your books. "We expect a two-digit return in our invested capital," says Seele. The business value of the shares is estimated at $ 2.9 trillion, write the OMV in a transmission. Includes $ 400 million in net debt.

Italians also increase

At the same time as OMV, the Italian energy group Eni has acquired a 20 percent stake, leaving Adnoc 65 percent.

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. OMV intends to reduce costs to the Abu Dhabi refinery. "OMV has led the leadership in Europe", according to its general director.

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