Adnoc finds major oil and gas reserves
CRUDE’S LISTING ON FUTURES EXCHANGE TO BOOST MARKETS
The Supreme Petroleum Council (SPC) yesterday announced the launch of a new pricing mechanism for Adnoc’s Murban crude oil, which will see the commodity being listed for the first time on an internationally recognised futures exchange market.
As well as the new price listing, the SPC also said that new oil and gas reserves were discovered in Abu Dhabi, with the latest hydrocarbon findings taking the UAE up to sixth place in terms of having the world’s most oil and gas reserves.
His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Vice-Chairman of the SPC, who presided over the meeting said the decision to list Adnoc’s Murban on a futures exchange would provide markets with greater confidence and solidify Abu Dhabi’s position as a global energy hub and an essential energy provider to the world.
Adnoc said it expects to list its Murban crude between the second and third quarters of 2020.
... The Supreme Petroleum Council announced major increases in #AbuDhabi oil & gas reserves & made historic decision to list on a stock exchange #ADNOC Murban crude oil, strengthening Abu Dhabi’s position as a global energy player.” Shaikh Mohammad Bin Zayed on Twitter
Abu Dhabi’s Supreme Petroleum Council (SPC), on Monday announced a new pricing mechanism for the Abu Dhabi National Oil Company’s (Adnoc) flagship onshore crude oil Murban, and announced a significant increase in oil and gas in the emirate of Abu Dhabi.
The new Murban crude pricing mechanism will use a market-driven futures contract as its price marker, allowing customers and the market to better price, trade, and manage their crude requirements.
The futures contract will be traded on an independent and regulated exchange.
Dr Sultan Al Jaber, Minister of State and Adnoc Group CEO, said the listing of Murban crude would improve the way Adnoc sells its oil and also help customers to better manage how they make their purchases.
Forward-looking decision
“The forward-looking decision and market-orientated foresight of His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and the SPC, to list Murban on an internationally recognised exchange and improve the terms of sale of Adnoc’s Murban Crude, is another significant step in our transformation.
7b Stock tank barrels of oil discovered
The initiative will enable our customers and other market participants to better price, manage and
58 tr Standard cubic feet of gas discovered
trade their purchases of Murban. This historic and strategic move cements the UAE, Abu Dhabi and Adnoc’s role in the international oil and gas sector,” he added.
Along with the new price listing, the SPC announced new hydrocarbon reserves of 7 billion stock tank barrels of oil and 58 trillion standard cubic feet (TSCF) of conventional gas.
The SPC also announced the discovery of unconventional recoverable gas resources totalling 160 TSCF, a first for the region.
Rankings improve
“We are very pleased and honoured to have enabled the UAE to move from the seventh to the sixth-largest oil and gas reserves in both global rankings. These achievements underscore Adnoc’s drive to ensure we remain a trusted, reliable and responsible supplier of energy to the world for decades to come,” Al Jaber commented.
“Crucially, the discovery of substantial unconventional recoverable gas resources, for the first time, marks an important milestone in the development of the UAE’s unconventional resources as we execute our integrated gas strategy,” he added.