UAE's ADNOC to sell at least 10 percent of fuel distribution business in IPO

Reuters

Published Nov 13, 2017 09:29

UAE's ADNOC to sell at least 10 percent of fuel distribution business in IPO

By Maha El Dahan , Rania El Gamal and Saeed Azhar

ABU DHABI/DUBAI (Reuters) - Abu Dhabi National Oil Company (ADNOC) aims to sell at least 10 percent of its fuel distribution unit in an initial public offering in Abu Dhabi, as Gulf states step up plans to privatise energy assets in an era of cheap crude.

The listing details came as Saudi Arabia and Oman are also looking to privatise energy assets as low oil prices squeeze revenues.

Saudi Arabia plans to list 5 percent of its national oil company Aramco by next year, which Saudi officials say could raise $100 billion (76.21 billion pounds), making it the world's biggest IPO.

At the holding company level, ADNOC will continue to be owned by the Abu Dhabi government, said ADNOC CEO Sultan Ahmed al-Jaber at an energy conference.

"The IPO of ADNOC Distribution represents an important milestone in this new approach and is a natural evolution for the growth and expansion of this exciting retail-focused business," al-Jaber said.

The ADNOC statement confirms a Reuters story in September that said the company could list more than 10 percent of its fuel retail business.

The transformation of ADNOC is also seen as part of an economic reform drive led by Abu Dhabi's Crown Prince Sheikh Mohammed bin Zayed Al Nahyan.

ADNOC produces some 3 million barrels of oil per day, or around 3 percent of global production. It also produces more than 9.8 billion cubic feet of raw gas per day, placing it among the largest energy producers in the world.