An announcement was made on the 26th of April by Reliance Industries Ltd and Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) regarding the signing of a shareholder agreement for the Ruwais Chemicals Project. The deal is looked upon with a lot of expectations as it holds immense potential to open up new opportunities on the economic front. Read along to know more about the shareholder agreement and the Ruwais chemicals project.
The What and Why
The chemical production facility goes by the formal name of the TA’ZIZ EDC & PVC project, and it boasts an investment worth a whopping $2 billion. The facility will be set up at the TA’ZIZ Industrial Chemicals Zone located in Ruwais which is located approximately 240 km west of Abu Dhabi.
A joint statement noted the fact that the Indian conglomerate is a “strategic partner with Abu Dhabi National Oil Company, and ADQ, an Abu Dhabi- based investment and holding company, in TA’ZIZ EDC & PVC.” The joint statement also mentions the $2 billion investment which will go into the production facility dealing with Chlor Alkali, Ethylene Dichloride, and Polyvinyl Chloride. The production of these chemicals in the UAE is good news for the manufacturers as this is the very first time that these chemicals are being produced in the UAE. As far as manufacturers are concerned, the production facility will bring with it new streams of revenue and several other opportunities that will be economically promising.
The senior executives signed the formal shareholder agreement during Mukesh Ambani’s visit to the ADNOC headquarters. Mr. Ambani is the Chairman and Managing Director of Reliance Industries Ltd. During the visit, the RIL chairman also met with Dr. Sultan Al Jabar, the UAE Minister of Industry and Advanced Technology.
As per the press release, “they discussed opportunities for partnership and growth in Upstream, new energies and decarbonization across the hydrocarbon value chain.”
A signed framework agreement was exchanged between Ambani and Al Jabar, as the collaboration seeks to expand the horizons and explore new opportunities. The agreement between ADNOC and RIL will open new roads of exploration, production, and development, particularly the production of resources, conventional and unconventional in Abu Dhabi in addition to the decarbonization of operations.
The collaboration is also symbolic of the strengthening ties between India and UAE. In the words of Al Jabar,
“Reliance is a valued strategic partner and our collaboration at TA’ZIZ underscores the important role of industrial and energy cooperation as a means of strengthening the deep-rooted and friendly ties between UAE and India.”
