The Abu Dhabi National Oil Company (ADNOC) is planning an overhaul for its trading operations through the launch of a regional oil benchmark similar to Brent and the West Texas Intermediate (WTI), Reuters first reported.
ADNOC is currently selling oil based on a retroactive pricing system, but it could soon launch full in-house trading for refined products and crude to trade freely on the open market to be more adaptive to market changes, as part of wider sector reforms.
In January, the Emirati company signed agreements worth $5.8 billion with Italy’s Eni and Austria’s OMV for oil refining and a new trading venture to sell refined products. ADNOC is also building oil storage under the mountains of Fujairah, which is expected to be completed next year.
The UAE is planning to boost oil output to 4 million barrels per day (b/d) by 2020, with most of this production expected to come from ADNOC.