ADNOC Exploring International Listing of Its Investment Arm XRG

Abu Dhabi National Oil Company is considering listing its international investment arm XRG on an exchange outside of the United Arab Emirates, three people with knowledge of the matter said, potentially creating one of the largest listed energy companies globally.

The discussions to list a minority stake of XRG, which was established late last year, are at a very early stage and Bank of America is advising the company on strategy, including the possibility of listing on an international exchange, the people said. Any flotation would be in about five years, one of them added.

Before pursuing an IPO, ADNOC would need to appoint a CEO for XRG and transfer assets into the company, two of the people said.

An eventual listing is the goal for XRG and is in line with the state oil giant's strategy, said two other people familiar with ADNOC's thinking who are not involved in the deliberations.

ADNOC and Bank of America declined to comment.

XRG, which ADNOC has said has $80 billion in assets, has a mandate to pursue global deals in chemicals, natural gas and renewables, as the emirate seeks to build a globe-spanning portfolio in those areas and rely less on revenue from