Page 6 - DMEA Week 42

DMEA COMMENTARY DMEA

ADNOC keeps busy

The Abu Dhabi oil firm has continued its recent spate of activity, setting up trading arms,
buying crude tankers and divesting more of its holding in its gas pipeline subsidiary

UAE ABU Dhabi National Oil Co. (ADNOC) has around $5.8bn, based on a valuation of around
maintained high levels of activity across the $19.4bn, which covered the 837,000 barrel per
WHAT: value chain throughout 2020 as it seeks to diver- day Ruwais refining complex in the Western
ADNOC has expanded its sify operations and revenue streams. Region and an ageing 85,000 bpd facility near
capabilities as it seeks to While a new trading arm has become an Abu Dhabi City, as well as a 1,900-km pipeline
exert greater control over important strategic addition to the company, network.
the hydrocarbon value plans to invest in renewables and hydrogen show In October last year, ADNOC said that
chain. that very few options are not on the table when it wanted to expand ADNOC Refining and
it comes to maintaining relevance as oil and increase capacity to 1.5mn bpd from the current
WHY: gas come under mounting pressure amid weak 925,000 bpd.
The company is keen to demand and growing environmentally sensitive UAE Minister of Energy and ADNOC Group
maintain market share sentiment. CEO H.E. Sultan al Jaber said of the formation of
and sees the midstream the new trading divisions: “Our steadfast focus is
as a vital component in Trading on providing a better service to our customers,
keeping its oil flowing to In September, ADNOC announced the forma- while also stretching the margin from every bar-
key consumer markets. tion of two new subsidiaries: ADNOC Global rel of oil that we produce, refine and trade. Our
Trading, a joint venture with Austria’s OMV and move into trading supports both of these goals.”
WHAT NEXT: Eni of Italy, will focus on refined products, while ADNOC said that its “marketing arm is mov-
ADNOC has continued to the wholly-owned ADNOC Trading will focus ing from a supplier that customers historically
divest stakes in key state on crude oil. collected products from, to a more customer and
assets and infrastructure, The news follows the 2019 agreement with market-centric, shipping and integrated logis-
and its success makes it its European partners to establish a physical tics, storage and trading organisation.”
the blueprint for large oil and derivatives trading JV incorporated at The parent firm owns storage capacity in the
firms around the world. Abu Dhabi Global Markets for exports of the UAE, Japan and India and last year acquired a
latter’s refineries’ products, which account for 10% stake in VTTI, which is undertaking an
around 70% of output, with the rest deployed expansion of its facilities in the eastern emirate
domestically. of Fujairah.
That deal came as Eni and OMV acquired
interests of 20% and 15% respectively in Storage release
ADNOC Refining for a combined total of Storage has been an area of interest for ADNOC

P6 www. NEWSBASE .com Week 42 22•October•2020