Abu Dhabi National Oil Company on Tuesday launched Adnoc Global Trading, a partnership with European oil services companies Eni and OMV that will trade refined products globally.
The business, which is 65 per cent owned by Adnoc, 20 per cent by Italy's Eni and 15 per cent by Austria's OMV, will commercialise Adnoc's refined products offering new delivery, pricing and hedging options to customers, the company said in a statement.
“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," said Dr Sultan Al Jaber, Adnoc group chief executive and UAE minister of industry and advanced technology.
"Together with our partners Eni and OMV, our new trading entity expands the reach of our products to new markets and new customers," he added.
The new division will be based at Abu Dhabi Global Market, the emirate's financial free zone, and will operate alongside Adnoc Trading, which completed its first derivatives trade earlier this year and focuses on crude oil trading.
The global trading business will employ market and price intelligence to trade refined products, using trading tools such as hedging to manage risk, Adnoc said.
It recruited talent from other Adnoc Group companies, international trading houses, the local market and from partners Eni and OMV. The company already works closely with Adnoc Refining to support decision-making on production flows, by providing insights into pricing and market opportunities, it said.
"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,” Dr Al Jaber said.
Eni already collaborates with Adnoc across the energy value chain and its "know-how, operational experience in trading processes and qualified people has accelerated the launch of the venture to quickly reach this important milestone”, the company's chief executive, Claudio Descalzi, said.
"Adnoc Global Trading 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,” OMV’s chief executive Rainer Seele said.