ADNOC

With the acquisition of eight VLCCs announced in 2021, ADNOC’s crude transportation capacity has now increase to 16mn barrels

ADNOC Logistics and Services acquires two additional VLCCs

ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), today announced the acquisition of two additional Very Large Crude Carriers (VLCCs), bringing the total number of VLCCs added to its fleet in 2021 to eight.

The VLCC fleet expansion plays a significant role in supporting ICE Murban Futures, which is expected to boost trading of the UAE’s flagship Murban crude oil, enabling it to reach new customers and markets around the globe.

The growth of ADNOC L&S’s VLCC fleet supports ADNOC Group’s commitment to increase its crude oil production capacity by 25% to 5 million barrels per day (mmbpd) by 2030.

The new acquisitions include a new-build VLCC, equipped with dual-fuel technology, which is expected to be delivered in Q12023, and an existing vessel that is scheduled to join the fleet in Q2-2021. These latest acquisitions mean that ADNOC L&S has now added a total crude oil cargo capacity of 16 million barrels this year.

“The acquisition of these VLCCs further consolidates our highly competitive offering, which covers the full spectrum of the oil and gas value chain,” asserted Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services.

ADNOC to explore potential of Hydrogen market with India

Dr. Al Jaber notes Hydrogen is in its infancy, but could be a game-changer

Aligning supply and demand key to developing the Hydrogen economy of the future, the Abu Dhabi National Oil Company (ADNOC) is working with its partners to identify viable market opportunities.

ADNOC is keen to explore the Hydrogen market with India’s public and private sectors to support India’s growing demand for energy and need for cleaner fuels according to Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO, ADNOC.

Speaking during a high-level ministerial session at a virtual Hydrogen Roundtable organized by The Energy Forum (TEF) in collaboration with the Federation of Indian Petroleum Industry (FIPI) and India’s Ministry of Petroleum and Natural Gas (MoPNG), Dr. Al Jaber reinforced the strong economic ties between the United Arab Emirates (UAE) and India.

Growing demand

“As India’s demand for energy grows, we stand ready to help meet that demand by making the full portfolio of our products available to the Indian market,” observed Dr. Al Jaber following remarks by Dharmendra Pradhan, India’s Minister of Petroleum and Natural Gas.

ADNOC currently produces about 300,000 tons of Hydrogen a year as part of its current industrial processes. He expressed optimism that alongside the company’s existing infrastructure and commercial-scale Carbon Capture Utilization Storage (CCUS) capabilities, it can become a major player in the developing blue hydrogen market. ADNOC is also exploring the potential of green Hydrogen through the Abu Dhabi Hydrogen Alliance which was recently established by ADNOC, Mubadala Investment Company (Mubadala) and ADQ, Dr. Al Jaber added, as the company prioritizes blue Hydrogen.

Dr. Sultan Ahmed Al Jaber

Smart fleet programme

ADNOC L&S, which is the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, has been pursuing a smart fleet expansion programme, driven by increased demand from its affiliates, in particular ADNOC Trading and ADNOC Global Trading, and favorable asset prices for crude vessels.

In 2020, ADNOC L&S grew its fleet with 16 deep-sea vessel acquisitions. As a result of the additional fleet capacity, ADNOC L&S can further improve cost efficiencies while providing a comprehensive service to its customers.

The company is developing one of the most sustainable, modern crude fleets in the world. The vessels added are a blended mix of new orders (four new builds on order) and modern existing vessels (four recently acquired).

The latest acquired vessels have a length of 336 meters with a deadweight of 300,000 metric tonnes. The existing vessel is equipped with a scrubber, which is an exhaust gas cleaning system that removes sulphur oxides from the ship’s engine, improving its environmental performance.

Historic moment as world’s first Murban Futures Contracts commence trading

Abu Dhabi’s position as a global energy hub reinforced as ICE Murban Futures launches on new IFAD commodities exchange

The Abu Dhabi National Oil Company (ADNOC) and Intercontinental Exchange (ICE) have, recently officially celebrated the start of trading of the UAE’s flagship crude oil, Murban, as a Futures contract on the new ICE Futures Abu Dhabi (IFAD) commodities exchange.

The high-profile launch event at Abu Dhabi Global Market (ADGM), was attended by HH Sheikh Mansoor Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, UAE.

The introduction of the world’s first Murban Futures contract is the latest step in ADNOC’s ongoing transformation into a more market and customer centric organization. By making Murban a freely traded crude, similar to Brent or WTI, customers have better price transparency, flexibility to hedge and manage risks and increased access to Murban crude.

Alongside ICE and ADNOC, nine of the world’s largest energy companies and traders are joining IFAD as founding partners. This includes BP, GS Caltex, INPEX, ENEOS, PetroChina, PTT, Shell, Total and Vitol. Representatives from the partner companies joined today’s launch event at ADGM, many participating virtually from around the world.

Historic moment

“This is a historic moment for ADNOC, Abu Dhabi, and the UAE as we celebrate the launch of the IFAD exchange with ICE and, with our partners, capitalize on the growing demand for high-quality Murban crude oil, particularly from markets in Asia,” commented Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO, ADNOC.

“This historic and strategic milestone reinforces the UAE and Abu Dhabi’s status as a leading global energy hub and underscores ADNOC’s central role as a catalyst to empower the UAE’s economic ambitions.” He added

Earlier this month, ADNOC announced that its Murban, Upper Zakum, Das and Umm Lulu crude grades will all be sold destination free, from June, allowing its crude oils to become a freely-traded commodity.

Murban Prime

Discovered in 1958, Murban has played a pivotal role as the bedrock of the UAE’s sustained economic development.

ICE Murban Futures are physically delivered contracts, with one futures contract equating to 1,000 barrels of Murban crude oil delivered from the ADNOC Terminal located in Fujairah, on the East coast of the UAE. Murban is ADNOC’s flagship crude grade, with production capacity of over 2 million barrels per day at present.

It currently accounts for around 50% of the UAE’s total production capacity, with plans in place to increase the production of Murban to more than 2.5 million barrels per day by 2030, in line with ADNOC’s goal of growing its production capacity to 5 million barrels of crude per day.

“With our outstanding partners, we are bringing a new benchmark to life, and just as Murban has powered the UAE for the past 50 years, with this new futures contract there is a tremendous future ahead for Murban as a price marker for global energy markets,” noted Jeffrey C. Sprecher, Chairman and CEO, Intercontinental Exchange.

“The launch of ICE Futures Abu Dhabi further reinforces Abu Dhabi’s status as a global energy hub,” remarked Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of Abu Dhabi Global Market.

Murban Futures will trade globally on the ICE platform, one of the world’s foremost energy exchange networks. All trades clear through ICE Clear Europe, based in London. From today, Murban now trades alongside ICE Brent and ICE WTI in the ICE network.