OMV Invests $2.43 Billion in ADNOC Refining and ADNOC Global Trading

Cleary Gottlieb represented OMV AG (OMV) in connection with its acquisition of a 15% interest in both ADNOC Refining and ADNOC Global Trading, a newly formed global trading joint venture in the Abu Dhabi Global Market, for approximately $2.43 billion (subject to certain post-closing adjustments).

The landmark strategic transaction closed on July 31, 2019.

ENI, an Italian oil and gas company, acquired a 20% interest in both ADNOC Refining and ADNOC Global Trading in parallel with OMV. ADNOC, Abu Dhabi’s national oil company, owns the remaining 65% interest in both ADNOC Refining and ADNOC Global Trading. The combined deal, which was announced in January 2019, is one of the world’s largest-ever refinery transactions.

The transaction is part of a comprehensive program involving the opening of various parts of ADNOC to international investment.

OMV, which is partly owned by the Abu Dhabi government’s Mubadala Investment Co., is an integrated international oil and gas company headquartered in Vienna, Austria. The transaction increases its refining capacity by 40%.

ADNOC Refining operates the world’s fourth-largest single site refinery complex (Ruwais East and West, located in the Western Region of the Emirate of Abu Dhabi), and the Abu Dhabi Refinery. With nearly zero heavy fuel oil yield, it is well positioned for IMO 2020 (regarding low sulfur marine fuel).

ADNOC Global Trading will be an international exporter of ADNOC Refining’s products, with export volumes expected to be around 70% of production. Physical and derivative trading is expected to begin in 2020 when all necessary processes, procedures, and systems are in place.