Abu Dhabi National Oil Co. is in talks with major refining companies in Africa and Thailand to invest in their businesses as it seeks to secure customers for its crude and expand its fuel-trading operations.
Abu Dhabi National Oil Co. eyes stakes in Africa’s largest refinery as it expands beyond the Gulf
- ADNOC is negotiating with major African and Thai refining firms to invest in their businesses, aiming to secure crude buyers and expand fuel trading.
- This marks a strategic shift for ADNOC, moving beyond its traditional reliance on the Ruwais refinery in the UAE to diversify globally.
- ADNOC has previously engaged with African oil markets by trading Nigerian crude and supplying refined products to countries like Kenya and Ethiopia.
- Nigeria’s Dangote Refinery is preparing for expansion, planning to raise $1.6 billion through a public share offering to double its capacity and become the world’s largest refinery.
Abu Dhabi National Oil Co. is in talks with major refining companies in Africa and Thailand to invest in their businesses as it seeks to secure customers for its crude and expand its fuel-trading operations, according to people familiar with the discussions.
The potential investments mark a shift for ADNOC, the world’s 12th-largest oil company by production, which has largely relied on its giant Ruwais refinery in the UAE to supply global fuel markets. Expanding overseas would give the company access to new customers, strengthen its trading business and reduce its reliance on operations in the Persian Gulf.
ADNOC has previously purchased African crude, including Nigerian barrels, for trading and supplied refined products such as gasoline and diesel to markets including Kenya and Ethiopia
The talks come as Nigeria’s Dangote Refinery prepares for a major expansion. The 650,000-barrel-per-day facility is holding its official IPO signing ceremony ahead of a public share offer scheduled to open on September 14.
Dangote Petroleum Refinery and Petrochemicals plans to raise $1.6 billion by offering 4.1 billion shares at ₦525 each, valuing the company at about $49 billion. The offer will close on October 13, following a $2.5 billion private placement completed in July.
The proceeds will fund an expansion that would increase the Lagos refinery’s capacity to 1.4 million barrels per day, potentially making it the world’s largest operating refinery and surpassing India’s Jamnagar complex.
DON’T MISS THIS:Africa’s largest manufacturing country attracts another Chinese company with an initial $32 million investment
Dangote also plans to develop a $16 billion refinery in Kenya, part of its broader push to expand refining capacity in Africa and reduce the continent’s reliance on imported petroleum products.
ADNOC’s refining push is part of a broader international expansion that includes XRG’s gas investments across Africa, Central Asia and the US and its acquisition of German chemicals maker Covestro. ADNOC Distribution also agreed in July to acquire Shell’s fuel retail operations in <a href="https://absafricatv.com/workshop-on-green-technology-transfer-in-south-africa/" title="Workshop on Green Technology Transfer in <a href="https://absafricatv.com/south-africa-and-nigeria-launch-tourism-revival-mission/" title="South Africa and Nigeria Launch Tourism Revival Mission…”>South Africa“>South Africa.
