STOCK Adnoc Abu Dhabi
ADNOC sets the barrel rolling with its ambitious listing of Murban crude contracts at IFAD, the brand new trading floor for commodities and futures. Image Credit: Reuters

Dubai: The Abu Dhabi energy giant ADNOC has launched the ICE Markets Intercontinental Exchange Futures Abu Dhabi (IFAD), becoming the first futures and commodities trading exchange established in the emirate. It is located at Abu Dhabi Global Market (ADGM).

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Group CEO of ADNOC, announced the launch. In a statement, ADGM saud: “We congratulate @AdnocGroup on the launch of their Murban Crude Oil contract, to be traded on IFAD. This milestone partnership bears witness to Abu Dhabi’s status as a leader in global #energy and an international #trading hub.”

Earlier this month, ADNOC announced that its Murban, Upper Zakum, Das and Umm Lulu crude grades will all be sold 'destination-free' from June, allowing its crude oils to become a freely-traded commodity.

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A complete transformation

The introduction of the world's first Murban futures contract is the latest step in ADNOC’s ongoing transformation into a more market- and customer-centric organisation. By making Murban a freely traded crude - similar to Brent or WTI - customers have "better price transparency, flexibilty to hedge and manage risks and increased access to Murban crude," ADNOC said in a statement.

ADNOC's flagship crude grade thus becomes available to a broader set of market particiants around the world. Alongside ICE and ADNOC, nine of the world’s largest energy companies and traders are joining IFAD as founding partners.

This includes BP, GS Caltex, INPEX, ENEOS, PetroChina, PTT, Shell, Total and Vitol. 

In making Murban a freely traded global commodity, it becomes even more attractive to market participants and will deliver greater value to ADNOC and its partners. This historic and strategic milestone reinforces the UAE and Abu Dhabi’s status as a leading global energy hub and underscores ADNOC’s central role as a catalyst to empower the UAE’s economic ambitions.

- Dr. Sultan Ahmed Al Jaber, Group CEO of ADNOC