Abu Dhabi National Oil Co. (ADNOC) has launched its second trading entity, in a joint venture with energy giants Eni and OMV.
ADNOC Global Trading (AGT) offers a broader range of integrated services to its customers and enables ADNOC to further commercialize its refined product sales with new delivery, pricing, and hedging options.
AGT will work closely with ADNOC L&S to provide greater access to the energy giant's global network of shipping and storage solutions.
The Abu Dhabi entity will have 65 percent in ADNOC Global Trading. Eni will retain 20 percent and OMV 15 percent.
Dr. Sultan Ahmed Al Jaber, UAE minister of industry and advanced technology and ADNOC Group CEO, opened the virtual trading arm alongside CEO's, Claudio Descalzi of Eni and Rainer Seele of OMV.
Dr. Sultan Ahmed Al Jaber said that the new trading entity expands the reach of ADNOC products to new markets and new customers.
“AGT will enhance the skills of our people by combining experienced traders with the next generation of bright home-grown talent, creating new and exciting opportunities for UAE nationals while unlocking additional revenue streams for ADNOC and the UAE,” he added.
“In our recent past, Eni developed many new initiatives along the value chain alongside ADNOC and we started a collaboration aimed at achieving new solutions for energy transition. Our contribution in terms of know-how, operational experience in trading processes, and qualified people has accelerated the launch of the venture to quickly reach this important milestone,” said Descalzi.
Dr. Rainer Seele said: “AGT will unlock an additional level of integrated value creation for its partners. This is especially important as we expect the oil, gas and derivatives markets to remain challenging and volatile."
For his part, ADNOC executive director of Marketing, Supply and Trading Khaled Salmeen said that the new trading platform allows ADNOC to offer customers new and additional services and tools, ultimately enabling both ADNOC and its customers to better manage pricing risks and derive more value from every barrel that we produce, refine, ship, and sell.
AGT practices its activities at the International Financial Center at Abu Dhabi Global Market (ADGM), alongside ADNOC Trading, which completed its first derivatives trade earlier this year, and ICE Futures Abu Dhabi (IFAD), which will launch Murban Futures on the 29th March 2021, subject to the completion of remaining regulatory approvals.
