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.