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Adnoc Refining waste project reaches financial close

14 June 2023

A consortium comprising France’s Veolia, Saudi Arabia’s Vision Invest and Abu Dhabi-based investment and holding company ADQ has reached financial close for the acquisition of two hazardous industrial waste treatment plants in Al-Ruwais Industrial City from Adnoc Refining.

The Abu Dhabi National Oil Company (Adnoc) subsidiary has handed over to the consortium the two hazardous industrial waste treatment plants, which together have a total combined capacity of 70,000 tonnes a year, after having achieved regulatory approvals and financial close.

It is understood the conditional agreement for the transaction was signed by the parties in November 2022.

The Veolia-led consortium will use the facilities to treat the hazardous waste of Abu Dhabi’s biggest industrial complex in Al-Ruwais, which includes the largest oil refinery in the Middle East.

The acquisition of plants was financed through a combination of equity and long-term non-recourse project finance debt with completion-contingent interest rate hedges put in place last November.

France's Natixis and Dammam-headquartered Arab Petroleum Investments Corporation (Apicorp) acted as the mandated lead arrangers and structuring banks. JP Morgan and Natixis acted as the contingent hedge and hedge providers.

Veolia will have a 50.1 per cent stake in the operating company alongside Vision Invest (24.95 per cent) and ADQ (24.9 per cent).

According to Veolia, the solutions it developed for the project will specifically focus “on maximising the resource recovery of water and oil from the oil and gas hazardous waste to reuse them in nearby industrial plants".

This supports Abu Dhabi’s drive towards a circular economy and local energy loops.

The consortium also plans to expand the existing solar farm to produce more locally sourced green energy.

Photo: Pixabay

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Jennifer Aguinaldo

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