OMV and ADNOC sign MoU in presence of Abu Dhabi’s Crown Prince H.H. Sheikh Mohammed bin Zayed and Austria’s Chancellor H.E. Sebastian Kurz
Agreements intend to explore potential opportunities in petrochemical projects and in OMV’s ReOil® process.
OMV and the Abu Dhabi National Oil Company (ADNOC) today signed two Memorandums of Understanding to explore new opportunities for collaboration in the petrochemical sector. The signing of the agreements was witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and His Excellency Sebastian Kurz, Federal Chancellor of Austria.
The agreements were signed by H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of ADNOC, and Dr. Rainer Seele, CEO of OMV.
One agreement provides for collaboration in the petrochemical sector, including the evaluation of new opportunities in petrochemical projects as a potential extension to the existing partnerships, as well as the exchange of knowledge and experience in petrochemical operations and refinery-petrochemical integration and optimization. The two companies will also assess opportunities for petrochemicals marketing support.
The second agreement intends to explore potential opportunities for collaboration in the area of OMV’s patented ReOil® process. This innovative process converts used plastics into synthetic crude, which can then be used to produce fuels or feedstock for petrochemical plants, thereby making a significant contribution to a sustainable future. The MoU provides for the establishment of a joint working group that should assess the feasibility of a scalable ReOil® plant in the UAE.
Rainer Seele: “These agreements underline our commitment to the strategic partnership with ADNOC and our readiness to bring expertise and add value to this collaboration. Moreover, we are following our strategy of expanding the value chain and further strengthening our petrochemical business, as well as contributing to CO2 reduction through the circular economy concept of our ReOil process.”
OMV and ADNOC work together across the value chain in many areas – upstream and downstream. In April 2018, OMV acquired a 20% interest in the offshore concession for the two SARB and Umm Lulu oil fields, followed in December 2018 by a 5% stake in the Ghasha sour gas and condensate field concession with a term of 40 years. In January this year, OMV acquired a 15% interest in ADNOC Refining, which owns the world's fourth largest refinery.
H.E. Al Jaber: “These agreements build on, and further strengthen, our long-term partnership with OMV across the full oil and gas value chain. OMV brings world-class expertise and advanced technology that will enable us to further stretch the value of our crude and secure greater returns from the global growth in demand for petrochemicals as we accelerate delivery of our 2030 smart growth strategy. This is yet another stepping stone in our journey to grow ADNOC’s downstream portfolio and establish Ruwais as a global refining and petrochemicals hub.”
OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of more than 20,000 employees in 2018, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Upstream, OMV has a strong base in Romania and Austria as part of the Central and Eastern Europe core region as well as a balanced international portfolio, with Russia, North Sea, Middle East and Africa as well as Asia-Pacific as further core regions. 2018 daily production stood at approximately 427,000 boe/d. In Downstream, OMV operates three refineries with a total annual processing capacity of 17.8 mn tons and more than 2,000 filling stations in ten countries. OMV runs gas storage facilities in Austria and Germany; its subsidiary Gas Connect Austria GmbH operates a gas pipeline network in Austria. In 2018, gas sales volumes amounted to around 114 TWh. Sustainability is an integral part of the corporate strategy. OMV is set to invest EUR 500 mn in innovative energy solutions by 2025.