Page 12 - DMEA Week 03 2021

DMEA POLICY DMEA

ADNOC merges downstream,

trading and marketing units

UAE UAE oil company ADNOC has merged its ADNOC has a 60% interest in TA’ZIZ, while
downstream business with its trading and mar- ADQ holds the rest. The pair aim to start devel-
ADNOC is also keting operations, as part of a strategy to enhance oping the Ruwais derivatives park in early 2021
bolstering its trading its non-upstream activities. and are targeting first chemicals production
operations to cut The downstream, trading and marketing in 2025. ADNOC’s new downstream directo-
reliance on third-party divisions have been amalgamated to form the rate will also support the company’s move into
traders. Downstream Industry, Marketing & Trading hydrogen.
Directorate. This new unit “will be a critical ena- “The directorate will also lead ADNOC activ-
bler of the company’s goal to responsibly deliver ities to capitalise on the emerging global market
the energy and energy products that the world for hydrogen, building on the company’s existing
needs.” position as a major producer with existing infra-
The main focus for sales will be the Asian structure, partnerships and customer relation-
market, where ADNOC projects demand for ships,” ADNOC said. “The new directorate will
refined and petrochemical products to surge govern ADNOC’s interests across its refining,
over the next decade. gas processing, petrochemicals, product sales,
ADNOC unveiled plans in 2018 with its shipping and integrated logistics and trading
partners to invest over $45bn in building up its portfolio.”
downstream activities, including an expansion ADNOC is also bolstering its trading oper-
of its Ruwais refining and petrochemicals com- ations to reduce its reliance on third-party
plex. In November, it teamed up with Abu Dhabi traders. The company launched a second
conglomerate ADQ with the aim of attracting trading arm in December focused on refined
$5bn in investment into petrochemical projects, products. The division, ADNOC Global
via their joint venture in TA’ZIZ. Trading, is 65%-owned by ADNOC, 20% by
“The directorate will also drive ADNOC’s Italy’s Eni and 15% by Austria’s OMV. Earlier
activities to catalyse the UAE’s industrial devel- last year it launched a crude oil-focused trading
opment and economic diversification, oversee- business.
ing the development of TA’ZIZ and the Ruwais The national oil company (NOC) is also look-
derivatives park,” the company said. “This will ing to expand its vessel fleet, taking advantage of
strengthen the UAE’s position as a globally com- current low costs for shipbuilding. Its ADNOC
petitive chemicals hub and destination for for- Logistics & Services at present has some six oil
eign direct investment [FDI].” tankers and two oil/chemical carriers. ™

P12 www. NEWSBASE .com Week 03 21•January•2021