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Abu Dhabi, UAESunday 16 December 2018

Adnoc and Aramco to ink agreement at Adipec

The two energy companies are eager to expand abroad and boost refining and petrochemical production

Adnoc and Saudi Aramco are expected to sign an agreement on the first day of the Adipec, which attracts thousands of companies from the energy industry. AFP
Adnoc and Saudi Aramco are expected to sign an agreement on the first day of the Adipec, which attracts thousands of companies from the energy industry. AFP

Abu Dhabi National Oil Company and Saudi Aramco will sign an agreement in the capital on Monday, according to an invitation to media on the first day of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec).

Dr Sultan Al Jaber, UAE Minister of State and Adnoc Group chief executive, and Aramco president and chief executive Amin Nasser will be present.

"The UAE and kingdom of Saudi Arabia have a strong relationship built on strategic interests," the statement said, without providing further details on the announcement.

Adnoc and Aramco signed an agreement in June to jointly invest in a US$44 billion (Dh161.61bn) refinery on the west coast of India. Aramco, which in April signed an agreement to jointly develop the 1.2 million barrel per day Ratnagiri refining and chemicals complex in western Indian state Maharashtra with a group of Indian refiners, will share its stake with Adnoc, making it the first such agreement between the two energy companies.

The two energy companies are eager to expand abroad and boost refining and petrochemical production to extract more value from their crude.

Saudi Arabia is the world's biggest oil exporter and Opec's only swing producer. The UAE, Opec's fourth-largest producer, accounts for 4.2 per cent of global production of crude, according to BP Statistical Review of World Energy.

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