BANGKOK, Thailand – Abu Dhabi National Oil Company (Adnoc), one of the world’s leading energy producers, is reportedly in talks with Thailand’s PTT and Nigeria’s Dangote Group over potential investments in refinery operations as it seeks to secure outlets for crude oil and expand its global fuel trading business.
According to The Edge Singapore, citing people familiar with the discussions, Adnoc is exploring the possibility of acquiring stakes in refineries operated by companies within the PTT group.
Any potential agreement could include crude supply contracts that would give Adnoc access to refined fuels from the facilities, allowing the Abu Dhabi-based company to supply crude to the refineries and potentially trade the resulting fuel products to other customers. People familiar with the discussions said an announcement on a deal could be made later this year. PTT has not commented on the report.
Adnoc is also reportedly in discussions with Nigeria’s Dangote Group over a potential stake in its refinery operations. A senior Dangote official confirmed that the company had been approached by several major industry players but did not specifically comment on discussions with Adnoc. The Dangote refinery in Nigeria is the largest refinery in Africa. The group, founded by Nigerian billionaire Aliko Dangote, is also planning another refinery in eastern Africa.
For Adnoc, potential investments in overseas refineries would represent a strategic expansion beyond its traditional reliance on its major refining complex at Ruwais in the United Arab Emirates.
Ruwais is one of the world’s largest crude oil processing centres and supplies refined fuels to international markets. Adnoc is now examining refinery investments in other regions as part of a strategy to secure buyers for its own crude and crude sourced from other producers while strengthening its oil trading operations.
The disruption to oil supplies and shipping routes caused by conflict in the Middle East has also highlighted the importance of diversifying operations beyond the Persian Gulf. Investments in overseas refineries would form part of Adnoc’s multibillion-dollar international expansion strategy. Its investment arm, XRG, has completed or pursued transactions involving natural gas assets in the United States, Africa and Central Asia, as well as the acquisition of German chemicals producer Covestro AG.
Adnoc Distribution, another subsidiary, reached an agreement in July to acquire Shell’s fuel retail business in South Africa, further expanding the company’s downstream presence outside the UAE.
Thailand could be particularly attractive to Adnoc because several of the country’s refineries are capable of processing heavier grades of crude oil.
People familiar with the discussions said this could make Thai refineries suitable for crude produced from Abu Dhabi’s offshore oil fields, while Adnoc’s trading arm could also source crude from other producers, including Iraq, to supply the facilities. A potential investment would therefore give Adnoc more than a financial stake in refinery assets. It could create an integrated arrangement linking crude production in the Middle East, refining capacity in Asia and Adnoc’s expanding international fuel trading network.
For Thailand, any agreement involving PTT refinery assets would potentially bring a major international energy player into a strategically important part of the country’s downstream petroleum sector.
However, the reported negotiations remain ongoing and no final agreement, refinery or ownership stake has been publicly confirmed. The discussions come at a time when major oil companies and national energy producers are increasingly seeking greater control over the entire energy value chain, from crude production and refining to fuel distribution and trading. For Adnoc, overseas refinery investments could provide a secure destination for crude while giving the company greater access to fuel markets far beyond the UAE.
