Page 14 - MEOG Week 46

MEOG PROJECTS & COMPANIES MEOG

ADNOC to start trading oil products

UAE UAE national oil company (NOC) ADNOC relationship with [Vitol Tank Terminals Inter-
intends to start trading refined products in national] allows us access to locations all over
December through its joint venture with Italy’s the world.”
Eni and Austria’s OMV, CEO Sultan al-Jaber told ADNOC has significant storage capacity in
a virtual conference on November 9. the UAE, Japan and India, and agreed last year
ADNOC Global Trading (AGT) is 65%- to acquire a 10% stake in VTTI, the owner of 15
owned by ADNOC, 20% by Eni and 15% by storage terminals in 14 countries. Combined,
OMV. The recently formed venture began deriv- these facilities are capable of storing around
atives trading in September with a focus on crude 60mn barrels of crude oil and refined products.
oil. It had hoped to launch trading operations in Diversifying into trading is one of the key tar-
the second quarter of this year, but the coronavi- gets in ADNOC’s long-term strategy. The com-
rus (COVID-19) pandemic led to delays. pany produces some 40mn tonnes per year (tpy)
“Next month, we will begin trading the full of refined products and petrochemicals, and is
portfolio of our refined products,” al-Jaber said working on an expansion project at its Ruwais
at the ADIPEC conference. complex.
ADNOC and its partners will focus on trad- The NOC is also looking to exploit current
ing refined products from the company’s 817,000 low costs for shipbuilding to expand its fleet.
barrel per day (bpd) Ruwais refinery. AGT has “ADNOC has always been a free-on-board
finished recruiting traders based in Abu Dhabi [FOB] seller. Shipping is a key part of it,” Salmeen
and is finalising its systems, al-Jaber said. said. “The current market provides opportuni-
ADNOC has global ambitions for AGT. ties. The price for second-hand and even new-
“The plan is to grow into Singapore, Europe build ships is competitive, probably a 10-year
and potentially gain a presence in the US,” low.” ADNOC Logistics & Services has six oil
ADNOC’s director for marketing, supply and tankers and two oil/chemical carriers, and is
trading said at the conference. “We start with aiming to expand its fleet to handle its parent’s
a million-barrel refinery behind us, and the growing needs.™

ICE to consider Murban futures for Asia sales

UAE THE Intercontinental Exchange (ICE) said it with a range of cash settled derivatives”, the ICE
had signed a memorandum of understanding said. These include outright, differential and
(MoU) with US producers Chevron and Occi- crack differentials against Brent, WTI, gasoil and
dental Petroleum, as well as commodity trader naphtha among others, as well as inter-commod-
Trafigura, on using the upcoming Murban ity spreads, which will launch alongside Murban
futures contract to price US crude oil being sent futures, according to the statement.
to Asia. “The Murban Futures Contract is a positive
ICE Futures Europe’s president, Stuart Wil- development in enhancing transparency for oil
liams, told the ADIPEC virtual forum this week markets and very relevant to us as an active par-
that the companies were exploring the use of the ticipant in crude oil trading in the Arabian Gulf
UAE-based Murban benchmark as the ICE pre- and as the largest exporter of US crude,” Trafig-
pares to launch the futures contract in March. ura’s head of crude for Asia, Daniel Yuen, said in
It is thought that using the new contract could the statement.
give Asian buyers an easier way to hedge against Meanwhile, Oxy Energy Services’ president,
physical purchases of US crude oil, also allowing Fred Forthuber, welcomed the upcoming launch
them to avoid using the Brent benchmark for of the Murban futures contract as a “great step in
hedging. the evolution of the oil market”.
“We’re starting to see interest from not just Noting that his company was one of the
Middle East crude exporters to Asia but we’re largest exporters of US crude to Asia, he said it
seeing other firms, particularly those exporting looked forward to exploring opportunities to use
light sweet crude, pay attention,” Williams said. the new benchmark.
According to a November 10 ICE statement, The US ships more than 3mn barrels per day
ICE Murban Crude Oil Futures will be a physi- (bpd) of crude globally, including to major Asian
cally delivered contract with delivery at Fujairah buyers China, South Korea and Taiwan, having
in the UAE on a free-on-board (FOB) basis. only begun unrestricted crude exports in late
ICE Murban Futures will be “complemented 2015.™

P14 www. NEWSBASE .com Week 46 18•November•2020