Dubai — Abu Dhabi National Oil Co -- the UAE's biggest energy producer -- has started derivatives trading through a new unit, with another trading joint venture alongside OMV and Eni due to be launched in the coming months.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
ADNOC Trading is focusing on crude oil, while ADNOC Global Trading -- its joint venture with OMV and Eni -- will focus on refined products, ADNOC said in a statement Sept. 30.
Both units will be based in Abu Dhabi's financial free zone, Abu Dhabi Global Market.
"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," said Sultan al Jaber, ADNOC Group CEO. "Our move into trading supports both of these goals."
ADNOC joins a host of other Gulf producers that have launched trading units in recent years as they seek a slice of the lucrative market dominated before by oil trading firms and international oil companies.
"ADNOC's marketing arm is moving from a supplier that customers historically collected products from, to a more customer and market-centric, shipping & integrated logistics, storage and trading organization," the company said.
ADNOC awarded in 2019 stakes in ADNOC Refining to OMV and Eni, with the two companies paying a total of $5.8 billion as the national oil producer embarks on expanding its downstream portfolio.
OMV took a 15% stake, Eni 20% and the remainder was retained by ADNOC.
The national oil producer has struck a number of deals to facilitate oil trading.
ADNOC, which has storage facilities in the UAE, Japan and India, acquired last year a 10% stake in storage terminal owner and operator VTTI, which will help expand its operations globally and in Fujairah where it is building the world's biggest single-site underground oil caverns.
ADNOC also announced in 2019 plans to build underground oil storage with a capacity of 42 million barrels of crude oil in Fujairah, in addition to its existing 8 million barrels of storage in the emirate that lies on the country's east coast.