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.


Can a hungry Mali turn rice technology into ‘white gold’?

Updated 18 min 19 sec ago
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Can a hungry Mali turn rice technology into ‘white gold’?

  • Malians are cautiously turning to a controversial farming technique to adapt to the effects of climate change
  • Dubbed the System of Rice Intensification (SRI), the new method was pioneered in Madagascar in 1983

BAGUINEDA: When rice farmers started producing yields nine times larger than normal in the Malian desert near the famed town of Timbuktu a decade ago, a passerby could have mistaken the crop for another desert mirage.
Rather, it was the result of an engineering feat that has left experts in this impoverished nation in awe — but one that has yet to spread widely through Mali’s farming community.
“We must redouble efforts to get political leaders on board,” said Djiguiba Kouyaté, a coordinator in Mali for German development agency GIZ.
With hunger a constant menace, Malians are cautiously turning to a controversial farming technique to adapt to the effects of climate change.

 

Dubbed the System of Rice Intensification (SRI), the new method was pioneered in Madagascar in 1983. It involves planting fewer seeds of traditional rice varieties and taking care of them following a strict regime.
Seedlings are transplanted at a very young age and spaced widely. Soil is enriched with organic matter, and must be kept moist, though the system uses less water than traditional rice farming.
Up to 20 million farmers now use SRI in 61 countries, including in nearby Sierra Leone, Senegal and Ivory Coast, said Norman Uphoff, of the SRI International Network and Resources Center at Cornell University in the US.
But, despite its success, the technique has been embraced with varying degrees of enthusiasm. Uphoff said that is because it competes with the improved hybrid and inbred rice varieties that agricultural corporations sell.
For Faliry Boly, who heads a rice-growing association, the prospect of rice becoming a “white gold” for Mali should spur on authorities and farmers to adopt rice intensification.
The method could increase yields while also offering a more environmentally-friendly alternative, including by replacing chemical fertilizers with organic ones, he said.
He also pointed out that rice intensification naturally lends itself to Mali’s largely arid climate.

FACTOID

Up to 20 million farmers now use rice intensification in 61 countries, including in nearby Sierra Leone, Senegal and Ivory Coast.