Adnoc looks at increased stake sale in gas subsidiary

Adnoc Gas

UAE oil major Abu Dhabi National Oil Company (Adnoc) intends to sell an additional 3 to 5 percent of Adnoc Gas, according to a news report.

A 5 percent stake sale may raise AED12.9 billion ($3.5 billion) based on Friday’s share price of AED3.48 on the Abu Dhabi Securities Exchange (ADX), Reuters reported citing informed sources.

The deal is likely to be announced in the coming days, but no final decisions have been made on the size or timing have been taken, the report said.

In a statement issued on Sunday, Adnoc said: “At this time, no decision has been taken about an additional share sale, including the timing or sizing of such a sale.”

“Adnoc continuously explores strategic opportunities to drive further growth, prioritize shareholder value, including in Adnoc Gas, and reiterates its ongoing commitment to enhance the Abu Dhabi equity capital market while generating sustainable returns for investors across its listed portfolio,” the statement added.

In March 2023 Adnoc raised $2.5 billion from the initial public offering of its gas business, recording the largest-ever listing on ADX.

Five percent of the company, or around 3.84 billion shares, were sold at AED2.37 per share, in the upper half of a range that began at AED2.25. 

This month, Adnoc Gas announced plans to acquire Adnoc’s 60 percent stake in the Ruwais LNG plant, at cost, in the second half of 2028, when first production is due.

Ruwais LNG, which includes two LNG trains, each with a production capacity of 4.8 million tonnes per annum (mtpa), will be the first LNG export facility in the Middle East and Africa region to run on clean grid electricity.

When fully operational in 2029, Adnoc Gas’ operated LNG production capacity will more than double to over 15 mtpa.

In May Adnoc successfully placed a further 5.5 percent of listed subsidiary Adnoc Drilling, increasing the company’s free float to 16.5 percent.

The sale of an additional 880 million shares through a book-building process will boost trading of the drilling unit’s stock on Abu Dhabi’s bourse.