UAE’s state-owned oil company Abu Dhabi National Oil Company (ADNOC) has unveiled its second trading entity, in a joint venture with two multinational energy giants Eni and OMV.
The Abu Dhabi entity will have a 65 percent stake in the new initiative, ADNOC Global Trading (AGT), which will focus on trade in refined products globally. The Italian energy company Eni will retain 20 percent and the Austrian oil firm OMV contains 15 percent hold in it.
UAE’s Minister of Industry and Advanced Technology, and ADNOC Group CEO, Dr. Sultan bin Ahmed Sultan Al Jaber opened the virtual trading arm.
“The go-live of ADNOC Global Trading marks another important milestone in the delivery of our 2030 smart growth strategy, and our focus on providing a better and broader service to our customers while driving growth and adding incremental value to our operations. AGT will enhance the skills of our people by combining experienced traders with the next generation of bright home-grown talent, creating new and exciting opportunities for UAE nationals while unlocking additional revenue streams for ADNOC and the UAE.”
Claudio Descalzi, CEO of Eni said that the establishment of the new global trading firm represents an additional strategic step in Eni’s partnership with ADNOC and OMV, “a partnership that is stronger and better able to face market dynamics.”
He further stated, “In our recent past, Eni have developed many new initiatives along the value chain alongside ADNOC and we started a collaboration aimed at achieving new solutions for energy transition. Our contribution in terms of know-how, operational experience in trading processes, and qualified people has accelerated the launch of the venture to quickly reach this important milestone.”
Rainer Seele, CEO of OMV said the strength of the three-way partnership through refining and trading is shown by AGT. “At OMV we strongly believe in the value of integrated business as a platform from which to achieve maximum efficiency and the best possible performance,” added Mr. Seele.
“The new trading arm will unlock an additional level of integrated value creation for its partners. This is especially important as we expect the oil, gas, and derivatives markets to remain challenging and volatile,” said ADNOC about the new venture.
ADNOC’s Executive Director of Marketing, Supply and Trading, Khaled Salmeen said the new trading platform enables ADNOC to deliver new and additional services and resources to customers, eventually helping both ADNOC and its customers to better manage pricing risks and extract more value from each barrel.
ADNOC Global Trading (AGT)
AGT provides a wider range of integrated services to its clients and allows ADNOC to further commercialize its processed product sales with new distribution, pricing, and hedging options. AGT will work with ADNOC L&S, the leading shipping company in the UAE, to provide broader access to the global shipping and storage solutions network of the energy giant. And also merchants will be able to provide bespoke arrangements including global delivery, shipping and storage of refined products, where they are needed.