July 22, 2020 / 7:45 AM / 19 days ago

UAE's ADNOC and ADQ form JV to invest in chemical projects

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai/Files

DUBAI (Reuters) - Abu Dhabi National Oil Company (ADNOC) and holding company ADQ have signed a joint venture deal to invest in chemicals projects in the planned Ruwais Derivatives Park, a statement from ADNOC said on Wednesday.

ADNOC will hold a 60% equity stake in the venture, while Abu Dhabi’s ADQ, a state-owned holding company, will have the remaining 40%, the statement said.

ADNOC and ADQ’s investment platform will evaluate and invest in anchor chemicals projects in the Ruwais park in Abu Dhabi.

ADNOC CEO Sultan al-Jaber said this was part of a strategy to develop the United Arab Emirates’ (UAE) derivatives sector and attract foreign investment.

The two companies will conduct a comprehensive feasibility study of projects for Ruwais. The results of the study are due before the end of 2020 and will include opportunities for prospective investors.

The joint venture will be incorporated in the Abu Dhabi Global Market free zone, pending approvals, with both companies jointly determining the management team and board.

Reporting by Maha El Dahan and Alaa Swilam, editing by Louise Heavens and Mark Potter

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