The Abu Dhabi National Oil Company (ADNOC) has incorporated two new trading units – ADNOC Trading, which will focus on crude oil, and ADNOC Global Trading (AGT), a joint venture with ENI and OMV, which will focus on refined products.
On 30 September 2020, ADNOC Trading began started derivatives trading as a direct market participant, which ADNOC says is a ‘major milestone’, representing its transition from being a product marketer to a global trader. ADNOC says that by becoming a trader, it will be able to offer a wider range of services to its customers and generate new revenue streams, in line with its 2030 strategy to become a more commercially driven company.
AGT is currently setting up the required processes, procedures and systems, and is expected to begin trading in the coming months.
Both units are based in Abu Dhabi’s International Financial Centre at Abu Dhabi Global Market (ADGM). The trading systems used have undergone extensive testing, ADNOC says safeguards are in place to oversee and track trading activity.
‘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,’ says Khaled Salmeen, executive director of ADNOC’s Marketing, Supply and Trading directorate and chairman of ADNOC Trading.