Dubai — Austrian energy group OMV may boost its investment in petrochemical projects in the UAE, where it has a stake in petrochemical company Borouge through its Borealis shareholding, OMV's CEO said Jan. 13.
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The UAE provides a competitive advantage due to its energy resources and large-scale facilities, he added. Borouge is a joint venture with Abu Dhabi National Oil Co., or ADNOC, the UAE's biggest energy producer.
OMV is set to become one of world's biggest polymer producers following last year's $4.7 billion deal with Abu Dhabi sovereign wealth fund Mubadala Investment Co. to boost its stake in chemical group Borealis to 75%. Mubadala, which owns 24.9% of OMV, will retain a 25% stake in Borealis.
OMV has long been attempting a push into petrochemicals, and the tie-up involves it in a number of partnerships, including a venture in Port Arthur, Texas, alongside Total and Mubadala-owned Nova Chemicals to build a 1 million mt/year ethane-based steam cracker.
ADNOC announced in 2018 plans to spend $45 billion with partners to develop its downstream industries in its industrial hub in Ruwais.
ADNOC Refining counts OMV as a shareholder with a 15% stake, alongside Eni with 20% and ADNOC with 65%. OMV also owns 15% of ADNOC Global Trading, a joint venture with Eni (20%) and ADNOC (65%) focusing on refined products trading, which started operations in September.