The Abu Dhabi National Oil Company (ADNOC) announced it is establishing a new trading unit within its Marketing, Sales and Trading Directorate to introduce and manage non-speculative trading in order to further maximize value from every barrel of crude oil and refined product that is produced and marketed by the company.
The unit will capitalize on the size and scale of the company’s crude oil and refined products portfolio, the flexibility of ADNOC’s refining system, and leverage synergies and integration opportunities across its downstream value chain.
UAE Minister of State and ADNOC Group CEO Sultan Ahmed Al Jaber announced that ADNOC will produce more products, and the Marketing, Sales and Trading function will play an even more critical role.
"Engaging in non-speculative trading will allow us to maximize value from our domestic and, over time, international downstream operations," he announced.
“By utilizing the flexibility in our downstream production facilities, accessing market opportunities and optimizing our supply chain, particularly to key growth markets, we aim to capture more value further along the value chain," indicated Jaber.
The minister indicated that by proactively managing crude oil and refined product flows across key geographies, combined with the option provided by the first-class assets and geographic location, ADNOC will constantly optimize its operations, capture market opportunities, and secure the highest value.
ADNOC will host Downstream Investment Forum in Abu Dhabi next month at which it will also provide details of co-investment opportunities across its downstream value chain for new and existing partners. The company will also set out the road-map for its downstream growth strategy during the forum.
“Looking out over the next two decades, we anticipate the sharpest growth within the energy sector will be petrochemicals, with demand forecast to climb 150 percent by 2040,” Jaber said.
He went on to say that to capitalize on this opportunity and make ADNOC more resilient against possible price volatility, the goal is to become a major global downstream player, creating a strong pull for the products, combined with the flexibility to respond quickly to shifting market needs.
ADNOC's announcement was made on the sidelines of the Middle East Petroleum and Gas Conference, in Abu Dhabi, which continues at Jumeirah at Etihad Towers, until April 24. The 26th annual event has gathered the global oil markets' leading players to discuss global and Middle East upstream and downstream oil and gas challenges, opportunities and trends.
