ADNOC to sink $45B in downstream expansion

  • ADNOC to sink $45B in downstream expansion

ADNOC to sink $45B in downstream expansion

"We have to live with the reality of the present geopolitics", Minister Dharmendra Pradhan told Reuters during a visit to the United Arab Emirates.

This kind of geopolitical (tension) affects both consuming and producing countries.

U.S. President Donald Trump on Tuesday reneged on an global nuclear accord with Iran and announced renewed sanctions against the OPEC member.

"Let's see how things are moving".

"There was an oil minister earlier too".

Al Jaber said the expansion plans for Ruwais will also support Abu Dhabi and the UAE's economic development and diversification, create high-skilled jobs and enhance the country's status as a globally attractive destination for energy investments.

"We are very happy to host our Indian guests here".

When sanctions were loosened against Tehran, India increased imports from Iran to nearly 900,000 bpd in late 2016, but intake has fallen back to around 500,000 bpd this year.

The Abu Dhabi National Oil Company (ADNOC) has expressed its intention to invest $45 billion in the country's downstream sector.

The state producer known as Adnoc will expand the complex's refining capacity by more than 65 percent, or 600,000 barrels a day, by 2025, through the addition of a third refinery, Chief Executive Officer Sultan Al Jaber said at an energy conference in Abu Dhabi.

As part of the plan, the refining capacity of the Ruwais facility, which now stands at 922,000 barrels per day (bpd), will be increased by more than 65,000 percent, or 600,000 bpd, by 2025 through an additional new refinery, creating a total capacity of 1.5 million barrels per day. With this partnership, new market opportunities will open up for Adnoc, as we not only help to ensure the energy security of the UAE's largest trading partner, but also gain greater access to one of the fastest-growing markets for high-quality crude oil.

Earlier on Saturday, India's oil minister told Reuters that there was a consensus between Saudi Aramco, ADNOC and Indian companies to firm a joint venture for India's Ratnagiri oil refinery. India's effort to secure supply for its refining industry led state-run Oil and Natural Gas Corp. and two other Indian companies in February to acquire a 10 percent stake in one of Abu Dhabi's biggest offshore oil concessions.

Pradhan was speaking at ADNOC's headquarters on the sidelines of an event marking the first cargo of crude oil from ADNOC, to the Indian Strategic Petroleum Reserves Ltd (ISPRL) after it has been loaded and was en-route to India.

ADNOC is evaluating some downstream expansion opportunities overseas with its strategic partners, he said, declining to give more details, but he said that India was a potential market. "In the near future the growth rate will be more stablised, we are expecting more energy requirement", he said.