State-owned Abu Dhabi National Oil Company has signed an agreement with Belgian plastics manufacturer Ravago Group to explore opportunities to grow in the global polymers segement at its refining and chemicals hub at Ruwais. The two companies will work on developing capabilities that will support this venture, as they expand their partnership, leveraging their respective strengths and building their human capital.
Dr Sultan Ahmed Al Jaber (pictured), UAE's Minister of State and ADNOC Group's chief executive, said: "Given the projected increase in demand for petrochemicals and higher value refined products, we are repositioning ADNOC to become a leading global downstream player".
The agreement aligns with ADNOC's announced plans to increase production by at least 50% from its current levels of 7 million tpy, as it looks to increase gas production by tapping into vast gas caps and scaling up sour gas production. OCP has engaged in a large scale development program that will allow it to capture a share of growing fertilizer demand.
OCP has a fertiliser capacity of 12 million tonnes and rock export capacity of more than 18 million tonnes, according to the announcement.
"The agreement builds on the expanded partnership model we announced past year, as we open our entire value chain to reliable, value-adding, long-term partners, who can complement our capabilities and resources, and enhance our market access", added Al Jaber, hailing the solid ties existing between the United Arab Emirates and Morocco.
Mr. Mostafa Terrab, OCP Group Chairman and CEO, said: "This collaboration between our companies brings together the world's largest phosphate reserves and the world's largest sulphur production capacity and it represents an unprecedented alliance in the industry, providing the partners with a world-class integrated asset base and complementary geographic locations".
ADNOC's downstream investment plans are in line with its 2030 strategy of a more profitable upstream, more valuable downstream and sustainable, economic gas supply, underpinned by more proactive and adaptive marketing and trading.
ADNOC plans to double its refining capacity and triple petrochemicals output potential by 2025, as it focuses more on downstream expansion. "We will invest significantly in Ruwais and open up attractive partnership and co-investment opportunities along our extended value chain to create a powerful new downstream engine and springboard for growth that will benefit our country, our company and our partners". For the record, OCP is one of the leading exporters of phosphate fertilizers in the world.