July 21, 2025 –
ADNOC Restructures Global Portfolio Through Strategic Share Transfer to Investment Arm
Abu Dhabi National Oil Company (ADNOC) has initiated a major corporate reorganization by transferring its 24.9% stake in Austrian energy group OMV to wholly-owned subsidiary XRG PJSC. The move forms part of the Emirati energy giant’s broader strategy to consolidate its international holdings under a specialized investment vehicle.
The transaction, pending regulatory approvals, positions XRG as ADNOC’s primary investment platform for managing global chemical assets. “This restructuring enables more efficient capital allocation as we expand our downstream footprint,” an ADNOC spokesperson told AsiaMB. The transfer comes as ADNOC advances plans to establish Borouge International as a new polyolefins powerhouse, where XRG would hold a 46.94% stake on ADNOC’s behalf.
The Abu Dhabi-based company continues making waves in global chemicals:
• Recently secured unconditional EU approval for its €15.2 billion Covestro acquisition
• Preparing to integrate Borealis and Borouge operations under Borouge International
• Maintaining strategic cooperation with OMV despite share transfer
Industry analysts note the restructuring reflects ADNOC’s aggressive transition from traditional hydrocarbons to high-value chemicals. The OMV stake transfer follows ADNOC’s $11 billion investment in chemical growth projects announced earlier this year, including new polyolefin facilities in Ruwais.
“These moves demonstrate ADNOC’s ambition to become a top-tier chemicals producer,” said an energy sector analyst. “By channeling international assets through XRG, they’re creating a more focused investment structure for downstream expansion.”
The reorganization comes as Middle Eastern oil majors increasingly pivot toward specialty chemicals and advanced materials. ADNOC’s recent deals position it to compete directly with Asian and Western chemical giants in premium polymer markets.