ABU DHABI: The approval of a board of directors for XRG, the new international investment arm of the Abu Dhabi National Oil Company (ADNOC), marks a significant strategic move in the evolving landscape of global energy.
Spearheaded by President Sheikh Mohamed bin Zayed Al Nahyan, this initiative aims to navigate the complexities of a lower-carbon future while maximising the potential of established energy sectors.
As highlighted by ADNOC, XRG is valued at over $80 billion and will focus on investments in lower-carbon energy, gas, and chemicals, reflecting a balanced approach to both innovation and traditional energy sources.
The composition of XRG’s board underlines ADNOC’s ambition and commitment to excellence. Renowned figures such as Jon Gray from Blackstone and former BP CEO Bernard Looney bring a wealth of experience and global perspectives to the helm of this new venture.
Prominent leaders on the list
The inclusion of prominent leaders like Egyptian billionaire Nassef Sawiris, UAE Investment Minister Mohamed Hassan Al Suwaidi, and other distinguished executives emphasises a collaborative strategy leveraging expertise from both the public and private sectors.
Sultan Al Jaber, ADNOC’s chief executive, taking on the role of executive chairman of XRG, signals a consolidation of leadership aimed at implementing a forward-thinking investment strategy. By focusing on sectors that complement ADNOC’s current strengths—gas, LNG, and chemicals—the company is strategically positioning itself to leverage growth opportunities in both conventional and renewable energy markets.
Recent developments, including ADNOC’s acquisition of German chemicals manufacturer Covestro for $16.3 billion, illustrate the company’s proactive approach toward diversifying its portfolio.
The acquisition is remarkable, as it stands as one of the largest foreign investments by a Gulf state, further solidifying ADNOC’s standing in the global market. Moreover, ongoing discussions regarding potential mergers and acquisitions with firms such as Austria’s OMV indicate ADNOC’s relentless pursuit of expansion and strategic partnerships.
