ADNOC forays into derivatives trading with AT and AGT units

By Rahul Vaimal, Associate Editor
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One of the world’s largest producers of oil and gas, Abu Dhabi National Oil Company (ADNOC) has ventured into a new operational vertical with ADNOC Trading and ADNOC Global Trading units. 

In what could be considered as a significant milestone for the organization and the region as such, ADNOC trading will allow the firm to begin derivatives trading as a direct market participant of the market.

The move will enable ADNOC to transcend from the position of being a traditional marketer of its products to a more sophisticated global trader.

ADNOC Trading (AT) and ADNOC Global Trading (AGT)

While the now operational ADNOC Trading (AT) unit will conduct crude oil trade, ADNOC Global Trading (AGT), a joint venture with ENI and OMV is expected to roll out within a few months once the required processes, procedures and systems to begin operations are at place.

The trading team at ADNOC AGT is currently optimizing ADNOC’s flows (crude, feedstock and product optimization) waiting to ramp up its activities once the new trading systems become operational.

Both ADNOC AT and AGT will have their new offices based out of Abu Dhabi’s International Financial Centre at Abu Dhabi Global Market (ADGM).

Dr. Sultan Ahmed Al Jaber
Dr. Sultan Ahmed Al Jaber
UAE Minister of Industry and Advanced Technology

“This historic achievement is yet another important milestone for ADNOC as we become a more modern, agile and progressive energy company. 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. Our move into trading supports both of these goals.

“The opening of our trading offices at ADGM further reinforces its position and reputation as a leading and growing commodities trading hub for our nation and the Middle East region.”

The firm has ensured that all safeguards are in place to oversee and track all trading activity with both trading systems used by AGT and AT undergoing thorough testing to ensure that they are ‘air-tight and water-tight’ before operations begin.