New pricing mechanism launched for Adnoc’s flagship Murban crude.
Abu Dhabi’s Supreme Petroleum Council (SPC) on Monday announced a rise in the UAE’s oil and gas reserves and launch a new pricing mechanism for Abu Dhabi National Oil Co’s (Adnoc) flagship Murban crude.
During the SPC’s meeting on Monday, which was presided over by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the council also announced a significant increase in oil and gas reserves as well as new gas discoveries in the emirate of Abu Dhabi.
The boost would move the UAE to sixth place in the global rankings for oil and gas reserves with 105 billion stock tank barrels of recoverable oil and 273 trillion standard cubic feet of conventional gas, Adnoc said in a statement.
The SPC, Abu Dhabi’s highest governing body for the oil and gas industry, said Adnoc’s Murban crude would be listed as a futures contract on an internationally recognised exchange and ADNOC will engage with customers and other stakeholders in coming months for the implementation of its new forward pricing mechanism.
Sheikh Mohamed highlighted Adnoc’s drive to stimulate socio-economic development in the UAE through its In-Country Value (ICV) program, which created an additional 1,000 private-sector jobs for Emirati talent in 2018 and is expected to grow over the coming years.
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, said the support of the UAE’s leadership is enabling Adnoc to accelerate the pace of its ongoing transformation into a more commercially-driven and customer-focused integrated energy company with global reach.
“Following the leadership’s wise directives, ADNOC is adopting more creative strategies and more flexible business models, while shaping value-add partnership opportunities to remain resilient and meet operational and financial targets in today’s unpredictable energy markets, as we deliver our 2030 strategy,” Jaber said.
The UAE, the third-largest oil producer in the Organization of the Petroleum Exporting Countries behind Saudi Arabia and Iraq, pumps around 3 million barrels per day, produced mostly by Abu Dhabi-based Adnoc.
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