Abu Dhabi Oil Company Eyes IPO

Abu Dhabi National Oil Company or ADNOC plans to publicly list some of its services business and enter into new partnerships with global investors.

The moves are part of ADNOC’s efforts to boost profitability and secure greater access for its products in key growth markets amid persistently low crude oil prices. The state-owned oil company of the United Arab Emirates is the world’s eleventh-largest oil company by production.

ADNOC noted that the initiative will accelerate the delivery of its 2030 growth strategy – to create a more profitable upstream business, a more valuable downstream business, and an economic and sustainable supply of gas for Abu Dhabi.

The UAE thus joins other oil-dependent nations like Saudi Arabia and Oman in announcing plans to sell equity stakes in portions of their state-owned energy companies to the public.

Saudi Arabia is aiming to sell as much as 5 percent of its state-run oil behemoth Saudi Aramco as part of the government’s plan to set up the world’s biggest sovereign wealth fund and reduce the economy‘s reliance on hydrocarbons. Saudi Aramco’s IPO is expected to be the world’s biggest ever offering, with the company valued at about $2 trillion.

ADNOC said it is considering the IPO of minority stakes of some of its services businesses which have attractive investment and growth profiles.

The listing of minority stakes in some of the company’s services businesses will be on local equity markets. However, ADNOC said there will be no IPO for the group holding company, which will remain fully owned by the Government of Abu Dhabi.

ADNOC is also seeking partnerships and co-investment opportunities in the oil, gas, refining and petrochemical sectors.

In the upstream segment, ADNOC plans to develop and further expand a regional, fully integrated drilling company. The company intends to create a new energy infrastructure venture in the midstream segment to generate value and further optimize its assets.

ADNOC also plans to further open its…

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