UAE state oil giant ADNOC to float stake in fuel subsidiary

The Abu Dhabi National Oil Company (ADNOC) is set to float a minority stake in one of its subsidiary companies for the first time, replicating neighbour Saudi Arabia's planned part privatisation of its state-owned oil company.

The initial public offering (IPO) is the first of several expected in the region as state-oil companies look to boost their finances with stock market offerings, Chairman Sultan al-Jaber said on Monday.

Saudi Arabia had previously announced plans to float up to five percent of its national oil company Aramco, with Riyadh hoping the oil giant will be valued at more than $2 trillion.

"I am pleased to announce the floating of a minority stake in the leading fuel distribution company, ADNOC Distribution," ADNOC chairman Jaber told the annual ADIPEC oil conference and exhibition, without saying when this would happen.

He said the initial public offering will be listed on the Abu Dhabi Securities Exchange, the third largest bourse in the Gulf.

The IPO will be open to both domestic and international investors, Jaber said.

He did not provide details about the size of the IPO, but insisted that parent company ADNOC will "remain wholly owned by the government of Abu Dhabi".

Abu Dhabi holds more than 90 percent of the 98 billion barrels of crude reserves in UAE. It pumps just over 2.75 million barrels per day.

ADNOC Distribution is the UAE's largest operator of retail fuel service stations and the sole retail fuel operator in the emirates of Abu Dhabi and Sharjah.