The Abu Dhabi National Oil Company (Adnoc) signed a three-year deal with Lotte Chemical Titan to sell the Malaysian petrochemical company up to 1 million tonnes of naphtha a year as the Emirate’ largest hydrocarbon producer increasingly strikes long-term deals to sell its products.
“With this agreement we are implementing a new approach toward our sale of naphtha,” said Abdulla Al Dhaheri, the director of marketing, sales and trade at Adnoc.
“Previously we have sold the product on shorter term, one-year contracts. By switching to a three-year contract we are capturing long-term market access and securing offtake. It is another example of how Adnoc is committed to mutually beneficial partnerships.”
___________
Read More:
Adnoc to boost carbon capture in oilfields by six-fold over the next 10 years
Adnoc chief: global growth to inflate energy demand, putting pressure on producers
___________
Adnoc produces more than 12 million tonnes of naphtha a year. It can be used for petrochemical-based products, including plastics used in cars, durable goods, detergent and milk bottles and food packaging.
The agreement was signed at Adnoc's headquarters by Mr Al Dhaheri and Lee Dong Woo, the president and chief executive of Lotte Chemical.
“Demand for petrochemicals in South East Asia is expanding steadily and this three-year agreement with Adnoc will ensure security of naphtha supply, enabling us to expand and diversify our product portfolio and diversify our product portfolio,” Mr Lee said.
