Latest news with #AbuDhabiNationalOilCo
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
EU Launches Investigation Into Adnoc's $13.7 Billion Acquisition of Covestro
The European Commission launched an investigation into Abu Dhabi National Oil Co.'s 11.7 billion-euro ($13.74 billion) acquisition of Covestro 1COV 0.23%increase; green up pointing triangle, citing concerns that foreign subsidies from the United Arab Emirates could distort the European market. The executive arm of the European Union said Monday that the possible foreign subsidies include an unlimited guarantee from the UAE, as well as a committed capital increase by the state-owned oil and gas producer into the German chemicals company.
Bloomberg
2 days ago
- Business
- Bloomberg
Adnoc's €12 Billion Covestro Takeover Hit by EU Subsidy Probe
Abu Dhabi National Oil Co. 's planned takeover of Covestro AG for nearly €12 billion ($14 billion) has been hit by an in-depth European Union probe under the bloc's tough new foreign-subsidy rules. EU regulators said Monday they will investigate concerns that Adnoc's state funding by the United Arab Emirates could allow it to behave in a way that hampers fair competition across the bloc.
Bloomberg
09-07-2025
- Business
- Bloomberg
Abu Dhabi's Oil Giant Draws Trader Ire With Murban Supply Muddle
Confusion around Abu Dhabi National Oil Co.'s supply of its flagship crude grade for this month has left traders frustrated and questioning official messaging around output. At the heart of the issue is predictability. Traders say Adnoc needs to give consistent signals about volumes to enable a stable physical-trading framework. Abu Dhabi also has ambitions for Murban to become a regional benchmark, establishing futures contracts on a regulated exchange four years ago.
Business Recorder
21-06-2025
- Business
- Business Recorder
Asian refiners seek more Mideast oil after spot premiums jump on Israel-Iran conflict
SINGAPORE /NEW DELHI: Asian refiners have requested more term crude oil supplies loading in August and September from producers in the Middle East after spot premiums jumped, six trade sources said on Friday. Spot premiums for Middle East benchmarks rose above $3 a barrel on Thursday, the highest levels in four months, on fears of supply disruption after fighting broke out between Israel and Iran last week. 'We are receiving additional interest from our customers in Asia,' a source at a Middle East crude supplier said, adding that the requests are for cargoes loading in August and September. A source at an Asian refiner said the official selling prices (OSPs) for Middle East crude are lower than spot levels, making it more economical to seek more term supplies. Two sources at Indian refineries said they will be receiving more July-loading term crude supply from Middle East suppliers as they anticipate lower supplies from Russia. The sources declined to be named as they are not authorised to speak to the media. Producers such as Saudi Aramco, Abu Dhabi National Oil Co (ADNOC) and Iraq's SOMO typically notify term customers on their allotted volumes a month before cargoes are due to load. It is not immediately clear if the producers will supply more oil, three sources said, although one of them pointed to rising output from the bloc. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, are unwinding supply cuts, planning to increase output by 1.37 million barrels per day between April and July.
The Star
20-06-2025
- Business
- The Star
Even Big Oil thinks Big Oil is getting too risky these days
What's an oil producer to do when it sees its core product under threat from declining demand and a war-torn neighbourhood? Just ask Abu Dhabi National Oil Co. The US$19bil all-cash bid for Australian gas producer Santos Ltd on Monday, from a consortium led by the state-owned United Arab Emirates (UAE) business also known as Adnoc, is one answer to the question. Adnoc has been on a shopping spree for gas assets in recent years. In common with its far larger peer Saudi Arabian Oil Co, which is currently spending more money developing new gas fields than crude reserves, it's been gradually transforming itself from a business that lives and dies on black gold, to one that cares as much about liquefied natural gas (LNG) ships as oil tankers. Just look at the list of deals made and mooted lately. Last May, it bought a stake in NextDecade Corp's liquefied natural gas export project in Texas. In April, people familiar with the matter told Bloomberg News it was considering a US$9bil bid for Aethon Energy Management's gas assets in Texas and Louisiana. It's also interested in buying BP Plc's gas assets in a potential breakup, Bloomberg News reported last week. In 2023, Adnoc spun off its own gas business and floated it on the Abu Dhabi stock exchange, where it makes up about one-seventh of the market. Last year, it started building an export terminal at Ruwais in the west of the country, a huge complex sufficient to meet all of Turkey's needs for imported LNG. In an environment where Israel's attack on Iran is ratcheting up the risk of all-out war in the region, there are several advantages to this strategy. For one thing, there's the perennial fear that Tehran, if pushed to the brink, may start creating problems in the Strait of Hormuz. The narrow stretch of water is guarded by Iran, Oman, and the UAE. Sustained attacks on shipping haven't happened since the 1980s Iran-Iraq war, not least because Iran's export revenues would suffer quite as much as its enemies'. It's still prudent to minimise the risk from such a weak point, though, in case a cornered Iranian government reaches for desperate measures. We're facing a world where oil demand is looking distinctly shaky, with crude production still sitting below the peak it hit back in 2018. Gas isn't doing that much better, with growth slowing well below historic rates thanks to the collapse in Russian pipeline exports since the 2022 invasion of Ukraine and a rising price that's deterring potential buyers in developing Asia and Africa. The segment of gas that's traded as LNG, however, has been a winner, with the capacity of liquefaction plants set to increase by about 40% between now and 2030. Maritime straits, like gas pipelines, are highly vulnerable to geopolitical meddling. If you can buy LNG assets that aren't exposed to Middle Eastern wars, however, you can avoid both the chronic decline in conventional petroleum demand, and the acute risks of conflict-driven supply shocks. These days, such assets aren't as abundant as a cash-rich national oil company might hope. Santos shares closed at a roughly 13% discount to Adnoc's cash offer on Monday, which has already been recommended by the target's board. Given the open-and-shut nature of the proposal, that's likely to reflect worries that Australia's Foreign Investment Review Board won't like the idea of a state-owned company that doesn't even publish financial statements buying the country's second-biggest petroleum business. It's still more likely to get over the line than other options out there. President Donald Trump was happy to boast about the deals struck with UAE businesses during his trip to the Middle East last month – but if you want an outright takeover, the United States in its current nativist mood probably isn't the best place to be looking. The final agreement over the sale of United States Steel Corp to Nippon Steel Corp, giving the US government a golden share that would allow it to dictate corporate policies, is an indicator of where things are headed. Other prospective regions such as South America, Central Asia and sub-Saharan Africa are already largely locked up by state-owned and independent oil companies. Europe's North Sea is in inexorable decline. Pickings are looking slim. The UAE is better placed than many to ride out the transition away from fossil fuels. Its vibrant non-oil economy means it can balance its budget and current account at the lowest crude prices in the Gulf. Only Qatar and Turkmenistan, among major petroleum exporters, do better – and each is essentially a gas producer, not an oil state. Eking out future revenues as the world's hunger for oil and gas declines is going to require emulating them, rather than the UAE's more oil-rich neighbours. — Bloomberg David Fickling is a Bloomberg Opinion columnist. The views expressed here are the writer's own.
