Adnoc & ADQ to establish new JV firm to develop in-country industrial projects
Adnoc will hold a 60% majority equity share in the JV, while ADQ will have the remaining stake
A joint venture (JV) agreement has been signed by the Abu Dhabi National Oil Company (Adnoc) and its holding company ADQ. The deal will see the creation of a new investment platform to fund and oversee the development of projects within the planned Ruwais Derivatives Park.
The park is said to be a key enabler of Adnoc Downstream’s 2030 smart growth strategy and the UAE’s chemicals and industrial growth strategy.
Adnoc and ADQ are said to have strong track records of driving private sector growth in Abu Dhabi. The former’s in-country-value (ICV) programme is said to have driven more than $12bn back into the UAE economy and created over 1,500 private-sector jobs for UAE nationals since it was launched in 2018.
ADQ brings together a range of vital local expertise across power and logistics, industrial fabrication and manufacturing, which will support the development of the planned Derivatives Park in Ruwais, the statement said.
With the required approvals, the JV will be incorporated in Abu Dhabi Global Markets with both firms jointly determining the JV’s management team and board, in line with global corporate governance best practice. The firms will jointly evaluate and invest in anchor chemicals projects said Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO, after sealing the agreement with Mohamed Hassan Alsuwaidi, CEO of ADQ.
“The range, scale and calibre of resources Adnoc and ADQ each bring to this new chemicals investment platform underscore Abu Dhabi’s position as a leading global destination for international investors and industrial partners,” stated Dr Al Jaber.
He added, “In line with Adnoc’s commitment to smart, responsible investment in the current market environment, as well as our unwavering focus on stretching the margin of every barrel of oil produced, our partnership with ADQ will expand on existing efforts to maximise the value of our assets in Ruwais, to kickstart the development of the UAE’s downstream derivatives sector, support the transformation of Ruwais into a global hub for industry and attract additional foreign direct investment.”
The JV partners will conduct a comprehensive feasibility study to further develop identified projects in Ruwais and take forward those that show maximum potential for value creation. The JV plans to announce the results of this study before the end of 2020, including specific details on its selected target projects and the range of potential opportunities available for prospective investors and partners.
