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UAE's ADNOC mulls downstream opportunities abroad with Aramco - sources

Reuters  |  DUBAI/NEW DELHI 

By and Nidhi Verma

DUBAI/(Reuters) - Co (ADNOC) is in talks with several partners, including Saudi Aramco, for possible joint ventures abroad, particularly in Asia, industry sources with knowledge of the matter told

The Abu Dhabi state company wants to increase its crude refining capacity by 60 percent and boost petrochemical production.

It plans to spend more than 400 billion dirhams ($109 billion) in the next five years, which will include boosting and investing in international activities, the company said in November.

ADNOC wants to expand its portfolio in markets where demand for is still growing, such as and India, securing a new outlet for its crude.

"As part of ADNOC's further expansion of our business, we are exploring a number of select international opportunities, especially in growth markets. We will update the market in due course," an ADNOC said on Wednesday, declining to comment on specific projects.

One source said the opportunities ADNOC could be looking at included a refinery and petrochemical project in India, for which signed an initial agreement on Wednesday with a consortium of Indian state refiners.

The source said talks were at a very early stage and no decision had been taken. It was not clear whether ADNOC would join on the same project.

In March, an of Corp said ADNOC was interested in buying a stake in its planned refinery.

Top executives from and & Petrochemicals - a joint venture of Indian Corp, and Corp - signed a memorandum of understanding to take equal stakes in the project in state.

may introduce at a later stage a strategic partner to share its 50 percent stake, Saudi Minister said on Wednesday in declined to comment on whether had been in talks with ADNOC for a partnership in the project.

The project includes a 1.2-million-barrels-per-day (bpd) refinery integrated with petrochemical facilities with a total capacity of 18 million tonnes per year.

It will be one of the largest refining and petrochemical complexes in the world, built to meet fast-growing fuel and petrochemicals demand in and elsewhere, and providing a steady outlet for Saudi

(Reporting by and Nidhi Verma; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 19:30 IST