Abu Dhabi National Oil Company and OMV AG have announced additional advancements in the establishment of Borouge Group International AG, having recently finalized an agreement related to the Borouge 4 production facility.
This agreement is anticipated to enhance profitability and enhance operational versatility.
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The companies confirmed that the establishment of Borouge Group International AG, resulting from the merging of Borouge Plc and Borealis AG as well as the purchase of Nova Chemicals, is proceeding as planned.
The anticipated completion of the transaction is set for the conclusion of March 2026, pending the fulfillment of standard conditions.
The recently executed asset utilization agreement grants permission to Borouge Plc, and subsequently Borouge Group International AG, to manage and promote the products generated by the Borouge 4 complex in exchange for a fee based on actual expenses.
The contract is anticipated to stay valid until the newly formed entity procures the Borouge 4 asset, with an estimated timeframe no earlier than 2029.
The plant, utilizing Borstar technology for the manufacturing of premium polyethylene, is predominantly held by ADNOC with a minority stake belonging to OMV. The commencement of operations at its initial facility is anticipated within this quarter, with production gradually increasing over the course of 2026.
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After the terms of the agreement are finalized, Borouge Group International AG is anticipated to gain entry to 13.6 million tonnes of nameplate production capacity spanning Europe, the Middle East, and North America.
This strategic move will solidify its status as one of the leading producers of polyolefins on a global scale.
ADNOC and OMV have announced that the proposed tender offer involving the conversion of Borouge Plc shares into Borouge Group International AG shares will be scheduled to coincide with an upcoming equity raise.
The companies have stated that Borouge Plc's planned annual dividend of 16.2 fils per share will remain unchanged after the transaction, thereby bolstering shareholder returns.
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Upon the task's conclusion, ADNOC's ownership interest will be moved to XRG, a wholly owned subsidiary, leading to equal ownership between XRG and OMV in Borouge Group International AG.