Abu Dhabi National Oil Co. (ADNOC) is in talks with major refining companies in Africa and Thailand to invest in their businesses as it seeks to secure customers for its crude and expand its fuel-trading operations, according to people familiar with the discussions.
This marks a strategic shift for ADNOC, the world’s 12th-largest oil company by production, which has largely relied on its giant Ruwais refinery in the UAE to supply global fuel markets. Expanding overseas would give the company access to new customers, strengthen its trading business, and reduce its reliance on operations in the Persian Gulf.
ADNOC has previously purchased African crude, including Nigerian barrels, for trading and supplied refined products such as gasoline and diesel to markets including Kenya and Ethiopia, according to Bloomberg's report.
The talks come as Nigeria’s Dangote Refinery prepares for a major expansion. The 650,000-barrel-per-day facility is holding its official IPO signing ceremony ahead of a public share offer scheduled to open on September 14.
Dangote’s $1.6 billion IPO
Dangote Petroleum Refinery and Petrochemicals plans to raise $1.6 billion by offering 4.1 billion shares at ₦525 each, valuing the company at about $49 billion. The offer will close on October 13, following a $2.5 billion private placement completed in July.
The proceeds will fund an expansion that would increase the Lagos refinery’s capacity to 1.4 million barrels per day, potentially making it the world’s largest operating refinery and surpassing India’s Jamnagar complex.
Dangote also plans to develop a $16 billion refinery in Kenya, part of its broader push to expand refining capacity in Africa and reduce the continent’s reliance on imported petroleum products.
ADNOC’s refining push is part of a broader international expansion that includes XRG’s gas investments across Africa, Central Asia, and the US, and its acquisition of German chemicals maker Covestro. ADNOC Distribution also agreed in July to acquire Shell’s fuel retail operations in South Africa.
