Adnoc’s XRG searching for buyouts in Europe

XRG, the global investment arm of state-backed Abu Dhabi National Oil Company (Adnoc), is reportedly looking at merger and acquisition (M&A) opportunities in Europe.

The company previously closed a three-way merger to create Borouge Group International, a $60 billion petrochemical giant with the world’s fourth-largest nameplate production capacity.

XRG is not ruling out additional investments in Europe, Bloomberg quoted Rainer Seele, president of XRG’s chemicals platform, as saying.

He said XRG remains positive about Europe’s long-term outlook, despite a critical view among many investors. Higher gas prices have impacted the profits of European petrochemical manufacturers, forcing production cuts.

In March, Adnoc suspended operations at the Ruwais refinery as a precautionary measure after a drone strike amid the Iran war caused a fire in the area. 

Some products have been shipped from Ruwais but most will be stored until the conflict ends, Seele said.

XRG is targeting 20-25 million metric tonnes per year of LNG capacity by 2035. 

The Adnoc subsidiary was set up to pursue acquisitions in the natural gas, chemicals and energy sectors and has acquired Germany’s Covestro for $17 billion. 

Further reading:

• UAE bent on overseas energy investment despite war
• The Hormuz islands that hold sway over global energy
• Borouge 2025 dividend reaches $1.3bn