ADNOC, the state oil company of UAE, has established an international investment arm XRG
ADNOC, the state-owned oil company of the United Arab Emirates, announced on Wednesday that it had launched XRG. This investment firm focuses on low-carbon energy sources and chemicals. It is valued at over $80 billion.
When it starts operating in 2025's first quarter, the company will focus initially on "transformational global investments". This is according to a statement from its parent Abu Dhabi National Oil Company.
The statement stated that it will try to increase its value by leveraging "the transformation in energy, the exponential growth of AI and the rise of the emerging economies."
ADNOC made a series of acquisitions, including in the gas and chemical industries. Along with LNG and renewables, it sees these as pillars to its future growth.
Covestro, a German manufacturer of plastics and chemicals, said earlier this month that its management and supervision boards supported ADNOC’s $16.3 billion offer.
Covestro is the largest foreign acquisition by a Gulf State. The region is looking to reduce its dependence on oil as the world shifts to cleaner energy.
XRG's announcement came after a meeting of the ADNOC Board, which was presided over by UAE President Sheikh Mohammed bin Zayed Al Nahyan. ADNOC said that the company was formed to increase ADNOC’s value and accelerate its international growth.
The statement stated that XRG aims to have its global chemicals business be one of the top five in the world by 2050. It expects a 70% increase in the global demand for specialty and chemical products.
XRG’s international gas business is seeking an integrated portfolio that will help meet a projected rise of 15% in natural gas consumption in the next decade, and a 65% rise in demand for liquefied gas by 2050.
ADNOC board approved on Wednesday the allocation of 200 billion dirhams (54.45 billion dollars) over the next five-year period as part the company's "in-country value program". $1 = 3.6728 dirhams of the UAE
(source: Reuters)
