ByTsvetana Paraskova– Mar 14, 2025, 8:08 AM CDT
Abu Dhabi National Oil Company (ADNOC) has launched talks to potentially buy the energy assets of the UAE’s sovereign wealth fund in a deal that could be worth about $10 billion, sources familiar with the plans told Bloomberg on Friday.
ADNOC – which has recently reshuffled shareholdings, listed some subsidiaries, and created an $80-billion investment firm for gas, chemicals, and low-carbon energy – started late last year talks with Mubadala Investment Company, the sovereign wealth fund of the UAE managing a diverse portfolio of assets at home and abroad.
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The ADNOC-Mubadala talks have stalled due to disagreements over the valuation, with a $10 billion transaction discussed, Bloomberg’s sources said, adding that discussions could resume after Ramadan ends at the end of this month.
Mubadala has $302 billion assets under management, while Mubadala Energy has a portfolio of operated and non-operated assets in 11 countries, with primary geographic focus on the Middle East and North Africa, Russia, and Southeast Asia.
Mubadala Energy’s portfolio is almost 69% gas, producing over 370,000 barrels of oil equivalent a day (boed), while actively pursuing opportunities in new energy sectors such as carbon capture and blue hydrogen.
ADNOC is focused on oil and gas and has moved to monetize its natural gas and drilling units in recent years via IPOs in the Emirates.
The national oil company, which pumps nearly all the oil in the UAE, targets to boost its crude oil production capacity to 5 million bpd by 2027, from 4 million bpd.
A few months ago, ADNOC announced the launch of XRG, an international lower-carbon energy and chemicals investment company with an enterprise value of over $80 billion.
Initially, XRG will focus on transformational global investments that create value across natural gas, chemicals, and lower-carbon energy solutions.
More recently, ADNOC has moved some of its natural gas and green energy assets in the United States into XRG.
By Tsvetana Paraskova for Oilprice.com
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