UAE's ADNOC plans overseas venture with Saudi Aramco: report

UAE's ADNOC is in discussion with several partners, including Saudi Aramco, to set up possible downstream joint ventures abroad, particularly in Asia, Reuters reported, citing industry sources.

“As part of ADNOC’s further expansion of our downstream business, we are exploring a number of select international downstream opportunities, especially in growth markets. We will update the market in due course,” an ADNOC spokesman said, without giving details on specific projects.

ADNOC wants to expand its downstream portfolio in markets where demand for oil is still growing, such as China and India, securing a new outlet for its crude, the news agency reported.

On Wednesday, Aramco and India’s Ratnagiri Refinery & Petrochemicals — a joint venture of Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp — signed a memorandum of understanding to take equal stakes in the project in Maharashtra state.

Aramco may introduce at a later stage a strategic partner to share its 50 percent stake, Saudi energy minister Khalid Al-Falih said at a press conference in New Delhi.

However, Aramco chief executive Amin Nasser declined to comment on whether Aramco had been in talks with ADNOC for a partnership in this particular project.

In November, state-owned ADNOC said it plans to spend more than AED 400 billion ($109 billion) in the next five years to boost gas output and invest in international downstream activities.