UAE’s Adnoc Reviews Wall Street Roles While Pushing For Deals

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(Bloomberg) — Abu Dhabi National Oil Co. is reviewing a list of banks to tap for financial advisory work, a process that has the potential to reshape its relationships with some of Wall Street’s top dealmakers just as the emirate embarks on an international investment drive. 

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The state energy giant has invited pitches from around 10 investment banks for retained advisory mandates that could include strategic initiatives and potential transaction work, people familiar with the matter said, asking not to be named discussing information that isn’t public. Adnoc periodically reviews its bankers, some of the people said.

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Still, the invitation for pitches would ramp up competition among Wall Street banks seeking to do business with the energy firm, which is a prolific global dealmaker. In 2024, Adnoc laid out out a $150 billion spending plan over five years, mainly to expand oil and gas production capacity, including in Abu Dhabi. Its investment unit has, meanwhile, been tapping former bankers to consider US liquefied natural gas deals.

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The banking relationships, viewed as among the most lucrative across the industry, are currently held by Moelis & Co., as well at PJT Partners, the people said. The review is ongoing and those investment banks could still retain their roles, they said.

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Adnoc and PJT declined to comment. Moelis didn’t immediately respond to a request for comment. 

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Adnoc has been actively chasing deals as it looks to expand its influence around the world. It acquired German firm Covestro AG in a $14 billion bet on lasting demand for chemicals in the energy transition, and bought gas assets in the US and Africa and Central Asia. 

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A move to take over Australia’s Santos Ltd. would have put it in the top ranks of global LNG producers, but it fell through. But despite some snags, the firm’s aspirations have enticed Wall Street, with bankers flying in from around the world for a slice of the fees from deals from both Adnoc and its newly-created investment unit.

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That business, known as XRG, has beefed up its ranks of dealmakers in Houston in recent months to drive energy acquisitions in the US. It has already acquired a stake in NextDecade Corp.’s Rio Grande LNG project being built in Texas.

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In recent months, XRG has tapped Bill Lambert, a former Goldman Sachs Group Inc. banker with stints in the energy industry, as a senior director for business development in the US. It has also hired Zade Satter, an ex-JPMorgan Chase & Co. banker, for business development there, according to his LinkedIn profile. XRG declined to comment.

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The duo have been tasked with scouting for deals in LNG and related energy industries in the US, people familiar with the matter said.  

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Adnoc has been keen to invest in American gas and businesses that supply energy to data centers. XRG recently appointed a US chief executive officer, based in Washington DC, who has also expressed interest in expanding its US footprint via acquisitions.

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—With assistance from Anthony Di Paola.

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