The Abu Dhabi National Oil Company (ADNOC) has announced that one of its new trading entities, ADNOC Trading (AT), has started derivatives trading as a direct market participant.
ADNOC noted that the move represents a major milestone for the company as it moves from being a traditional marketer of its products to a more sophisticated global trader.
AT, which focuses on the trading of crude oil, is one of ADNOC’s two trading units. The other is ADNOC Global Trading (AGT), which is a joint venture with Eni and OMV that will focus on the trading of refined products. AGT is on track with establishing the required processes, procedures and systems to begin operations in the coming months, according to ADNOC.
“This historic achievement is yet another important milestone for ADNOC as we become a more modern, agile and progressive energy company,” Ahmed Al Jaber, the United Arab Emirates Minister of Industry and Advanced Technology, and ADNOC’s Group chief executive officer, said in a company statement.
“Our steadfast focus is on providing a better service to our customers, while also stretching the margin from every barrel of oil that we produce, refine and trade. Our move into trading supports both of these goals,” he added.
Khaled Salmeen, the executive director of ADNOC’s marketing, supply and trading directorate, and the chairman of AT, said, “ADNOC has continually adapted during Covid-19 to deliver on its commitments to domestic and international customers, including our landmark move to forward pricing of Abu Dhabi crudes”.
“In 2020, our plans for ADNOC Trading and ADNOC Global Trading become a reality. In the weeks and months ahead, trading will become integral to how ADNOC manages its business, helping us to better manage our product flows, deliver greater efficiencies, and provide our customers with a broader service and more integrated solutions,” he added.
ADNOC describes itself as one of the world’s leading diversified energy and petrochemicals groups, as well as a primary catalyst for the UAE’s growth and diversification.
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