Abu Dhabi National Oil Company (Adnoc) is reportedly considering acquiring energy assets from the Mubadala Investment Company, according to sources familiar with the situation. Negotiations initially began late last year, but discussions have since stalled due to disagreements over asset valuation. The potential deal is estimated to be worth around $10 billion.

Sources indicated that talks might resume soon, likely after Ramadan concludes in March. Key executives from both Adnoc and Mubadala, alongside leaders from Abu Dhabi, are eager to move forward with the deal. However, no final decisions have been made, and it remains unclear if the transaction will ultimately take place. While Mubadala declined to comment, Adnoc representatives did not respond immediately to requests for information.

Mubadala holds significant energy assets, including gas fields in Thailand and Indonesia, projects in Malaysia, and an oil joint venture in Oman. The company is also a majority stakeholder in Dolphin Energy Ltd., which processes gas from a major field in Qatar and transports it to the UAE through pipeline. Ownership of these assets would remain within Abu Dhabi, aligning with the emirate’s strategy of reorganizing state holdings to focus on specific industries.

Over the past year, Abu Dhabi has established new investment vehicles aimed at deploying capital across various sectors, including artificial intelligence and energy. Mubadala, which manages approximately $330 billion in assets, has been looking to divest parts of its energy portfolio acquired over the last decade, shifting its focus towards healthcare, finance, and technology.

A successful acquisition would reinforce Adnoc’s commitment to the oil and gas sector. The company already oversees the UAE’s extensive oil fields and is expanding its operations internationally. Recently, Adnoc established an overseas investment firm called XRG PJS and has been reallocating its global assets to this new entity.

In addition to this potential acquisition, Adnoc has been active in the market, recently finalizing a $13.4 billion deal to purchase Nova Chemicals from Mubadala. This merger is part of a broader strategy that includes significant investments in North America, particularly in the Gulf Coast’s production facilities.