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ADNOC Launches 2nd Trading Arm

The Abu Dhabi National Oil Company (ADNOC) has announced that it has officially launched its second trading arm, ADNOC Global Trading (AGT).

A joint venture between ADNOC, which holds a 65 percent stake, Eni, which holds a 20 percent interest, and OMV, which holds the remaining 15 percent stake, AGT focuses on the trading of refined products globally. The new trading arm is said to offer a broader range of integrated services to its customers and enables ADNOC to further commercialize its refined product sales with new delivery, pricing and hedging options, according to the company. AGT will work closely with ADNOC L&S and its teams will trade light and middle distillates on their trading books, including jet, naphtha, diesel, and gasoline as well as speciality products. AGT is said to have attracted global and local talent of the highest caliber from international trading houses, ADNOC Group companies and partners Eni and OMV. Each trading team consists of a combination of experienced traders and local talent, according to ADNOC.

ADNOC noted that AGT has become part of the growing International Financial Center at Abu Dhabi Global Market (ADGM), alongside ADNOC Trading, which completed its first derivatives trade a few weeks ago and ICE Futures Abu Dhabi (IFAD), which will launch Murban Futures on March 29, 2021, subject to the completion of remaining regulatory approvals.

“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,” UAE Minister of Industry and Advanced Technology and ADNOC Group CEO Ahmed Al Jaber said in a company statement.

“Together with our partners Eni and OMV, our new trading entity expands the reach of our products to new markets and new customers. 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,” he added.

Eni CEO Claudio Descalzi said, “in our recent past, Eni have developed many new initiatives along the value chain alongside ADNOC and we started a collaboration aimed at achieving new solutions for energy transition”.

“The launch of this new global trading company represents an additional strategic step in our partnership with ADNOC and OMV, a partnership that is stronger and better able to face market dynamics,” he added.

“Our contribution in terms of know-how, operational experience in trading processes and qualified people has accelerated the launch of the venture to quickly reach this important milestone,” Descalzi continued. OMV CEO Rainer Seele said, “the launch of AGT shows the strength of our partnership across refining and trading”.

“At OMV we strongly believe in the value of integrated business as a platform from which to achieve maximum efficiency and the best possible performance,” he added.

“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,” Seele went on to say.

ADNOC is one of the world’s leading diversified energy and petrochemicals groups, as well as a primary catalyst for the UAE’s growth and diversification, according to its website. Eni is a global energy company with more than 31,000 employees and OMV is the largest Austrian energy company.

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