Abu Dhabi National Oil Company (Adnoc) is on track with its plans to privatise a portion of its refining business (Adnoc Refining) in the first quarter of 2019.

MEED previously quoted Adnoc’s Downstream director Abdulaziz Alhajri as saying that several international energy companies had submitted bids for partnering with the Abu Dhabi energy major in its refining operations.

“Adnoc’s plans to let other companies take [a] stake in its refinery business is taking shape. Sound progress has been made and we can expect a decision on this in this quarter itself,” according to a source with knowledge of the transaction.

It is not yet clear, however, what percentage of Adnoc Refining is being considered for sale. It is also unknown whether Adnoc is looking for just one, or more than one partner.

The source said Adnoc is having conversations with several energy firms, although what the final nature of the partnership structure will be is not yet known.

Alhajri told MEED in November that “the stake could be anywhere between 5 and 40 per cent”.

Adnoc Refining is estimated to be worth $20bn. It has a refining capacity of 922,000 barrels a day (b/d) from its two refinery units in the Ruwais industrial zone.

Adnoc’s refining output will grow to about 1.5 million b/d when its new third new refinery in Ruwais, to be commissioned in early 2024, will add another 600,000 b/d of output.

The new refinery project in Ruwais is part of the $45bn downstream growth plan Adnoc announced in May 2018.