ADNOC mulls JVs abroad with Aramco

Dubai/New Delhi : Abu Dhabi National Oil Co (ADNOC) is in talks with several partners, including Saudi Aramco, for possible downstream joint ventures abroad, particularly in Asia, industry sources with knowledge of the matter said.The Abu Dhabi state energy company wants to increase its crude refining capacity by 60 percent and boost petrochemical production.

It plans to spend more than 400 billion dirhams ($109 billion) in the next five years, which will include boosting gas output and investing in international downstream activities, the company said in November.

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.

“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 on Wednesday, declining to comment on specific projects.

One source said the opportunities ADNOC could be looking at included a refinery and petrochemical project in India, for which Aramco signed an initial agreement on Wednesday with a consortium of Indian state refiners.

The source said talks were at a very early stage and no decision had been taken. It was not clear whether ADNOC would join Aramco on the same project.

In March, an executive of Indian Oil Corp said ADNOC was interested in buying a stake in its planned west coast refinery.