Inspenet, May 20, 2023
Abu Dhabi National Oil Co (Adnoc), the largest oil producer in the United Arab Emirates is exploring the idea of selling a new, heavier grade of crude as the company revamps the way it trades barrels in an effort to maximize profits. Profits.
Adnoc could introduce the mix, which would likely come from various offshore deposits, late next year, according to people with knowledge of the situation. The new grade could be named Ghasha after one of the offshore fields and would be introduced once those developments ramp up production.
The company is evaluating market demand for the new variant and trying to determine if there is enough flow to warrant it, said the people, who asked not to be named. Adnoc declined to comment.
Adnoc opens the doors to a new market niche with a heavier crude: What impact will it have on the industry?
The creation of the new grade could help ensure the quality of Adnoc’s other marine crudes by eliminating heavier barrels. It could also fill a niche market for crude that is not as light as the UAE’s other oil blends, according to the people. The company may also decide not to go ahead with the new grade, they said. In that case, it would be mixed with one of the existing grades.
The United Arab Emirates, the third-biggest producer in the Organization of the Petroleum Exporting Countries, has used its oil wealth to build a hub of business, entertainment and transportation in the region. Adnoc is spending billions to increase crude production capacity by about a quarter, to 5 million barrels a day by 2027, as it expands its natural gas and chemicals industries and looks for ways to make those businesses are less polluting.
Adnoc has allowed its flagship Murban crude to be freely traded on an exchange in Abu Dhabi since 2021 and wants Upper Zakum grade to be bought and sold in the same way, Bloomberg reported. Murban, with a capacity of about 2 million barrels a day, comes from Abu Dhabi’s onshore fields, while Upper Zakum is produced from offshore fields along with Das and Umm Lulu crudes, which are pumped in smaller quantities.
The company is looking to have the Murban trade as a benchmark, along with Brent.
Source : https://petrobanca.com/adnoc-explora-la-introduccion-de-un-nuevo-grado-crudo-mas-pesado/
Cover photo : Editorial credit: Marco Curaba / Shutterstock.com
Internal photo : Editorial credit: Muhammad Qadri Anwar / Shutterstock.com
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