ADNOC’s new trading unit to play ‘critical role’ in expansion plans

ADNOC logos on display at GASTECH, in Chiba, Japan. ADNOC has set up a new unit for trading crude oil and refined products as part of its strategy to maximize returns on every barrel of oil produced and drive revenue from new business streams. (Reuters)
Updated 23 April 2018
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ADNOC’s new trading unit to play ‘critical role’ in expansion plans

  • ADNOC CEO Sultan Ahmed Al Jaber: “As ADNOC grows and expands its upstream and downstream businesses, we will produce more products, and in turn, our marketing, sales and trading function will play an even more critical role.”
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“Engaging in non-speculative trading will allow us to maximize value from our domestic and, over time, international downstream operations.”

LONDON: Abu Dhabi National Oil Company (ADNOC) has set up a new unit for trading crude oil and refined products as part of its strategy to maximize returns on every barrel of oil produced and drive revenue from new business streams.

“As ADNOC grows and expands its upstream and downstream businesses, we will produce more products, and in turn, our marketing, sales and trading function will play an even more critical role,” said Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO.



“Engaging in non-speculative trading will allow us to maximize value from our domestic and, over time, international downstream operations,” added Al Jaber.

The news comes as ADNOC is pushing forward with its plans to expand its downstream business in anticipation of the growth in the global petrochemicals sector.

“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,” Al Jaber said.

“To capitalize on this opportunity and make ADNOC more resilient against possible price volatility, our goal is to become a major global downstream player, creating a strong pull for our products, combined with the flexibility to respond quickly to shifting market needs,” he said in an official statement.

ADNOC announced last November it was planning to invest more than 400 billion dirhams ($109 billion) over the next five years to increase its domestic refining, gas and petrochemicals businesses as well as expand its international downstream operations.

The firm is expected to set out its plans for downstream growth at an investment forum being held in Abu Dhabi in May.

ADNOC’s 2030 strategy — approved in 2016 — aims to increase petrochemical production from 4.5 million tons per year in 2016 to 11.4 mtpa by 2025.


Saudi Arabia and UAE launch a new joint cryptocurrency

Updated 20 January 2019
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Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.