Informed sources told Reuters that Abu Dhabi National Oil Company (ADNOC) intends to establish a commercial office in the United States.
Quoted Reuters “Informed sources said that the Abu Dhabi National Oil Company (ADNOC) intends to establish a commercial office in the United States as part of the company’s efforts to expand globally.
ADNOC recently held talks to hire senior energy traders to oversee expansion efforts in the United States.
The sources requested anonymity in order to discuss confidential details, and cautioned that it is still possible for ADNOC to change its plans to focus on other places.
ADNOC declined to comment.
ADNOC has intensified its global expansion in the past few years in search of new sources of revenue, and this has included conducting trade operations since 2018.
Two subsidiaries of ADNOC undertake commercial activities: ADNOC Trading, which focuses on crude oil, and ADNOC International Trading, which is a joint venture with Italy’s Eni and Austria’s OMV and focuses on refined products.
Sources told Reuters earlier that ADNOC plans to open a commercial office in Geneva and a representative office in London. One source explained that the Swiss office began work in early May.
The company is also looking to expand its role in the growing liquefied natural gas trade, and is seeking to sign agreements in the United States, which has become the largest exporter of cryogenic gas in the world as it sends unprecedented quantities to Europe.
At the same time, the rapid increase in US crude oil and fuel exports has prompted companies such as state-owned giant Saudi Aramco to establish trading offices in Texas, the epicenter of the US shale revolution.
After the collapse of oil prices in 2014, other energy producers in the Middle East have increased their trading activities over the past few years to gain greater control over the sale of the resources they extract, and align their business models more closely with major oil producers around the world.
High volatility in commodity prices in the past few years has helped energy producers make huge profits from trading, even when falling prices have hurt their income from core activities.
