The Abu Dhabi National Oil Company (ADNOC) plans to enter the oil trading business, Reuters reports.
The plan is part of an overall shift in business strategy under the company’s new CEO, Sultan El Jaber, to make the company more responsive to international markets, similar to other state-owned oil companies, according to Reuters.
As part of its new strategy, the state-owned oil company of Abu Dhabi recently announced a partial initial public offering (IPO) of its retail subsidiary, ADNOC Distribution.
During an interview with Reuters, El Jaber said that ADNOC might sell stakes in other subsidiary companies.
“[A]nything that is currently owned by ADNOC, especially companies in the service sector, are actually candidates for us to explore where we can unlock and maximize value,” he said.
He cautioned, however, that future sells would “not necessarily” be IPOs, indicating ADNOC would also consider other types of sales and partnerships, according to Reuters.
“We have not in any way considered anything [sales of] more than a potential 30% in the future,” he added, noting that ADNOC “will always continue to own a significant majority,” Reuters reports.
Earlier this month, another subsidiary, Abu Dhabi Crude Oil Pipeline (ADCOP) raised $3 billion through a public bond offering as part of ADNOC’s strategy to revamp its capital structure and ensure cash flow.
The company plans to increase its production and refining capacity. It is looking to increase its production capacity to 3.5 million barrels per day and its refining capacity by 60%, Reuters previously reported.