PR88699

ABU DHABI, United Arab Emirates, March 29, 2021 /PRNewswire=KYODO JBN/ --

- Abu Dhabi's position as a global energy hub reinforced as ICE Murban Futures

launches on new IFAD commodities  exchange

- Murban begins trading alongside Brent, WTI and other leading futures

contracts as part of the ICE network

- Nine of the world's largest energy companies and traders join ICE and ADNOC

to launch Murban Futures

The Abu Dhabi National Oil Company (ADNOC) and Intercontinental Exchange (ICE)

have, today, officially celebrated the start of trading of the United Arab

Emirate's (UAE) flagship crude oil, Murban, as a Futures contract on the new

ICE Futures Abu Dhabi (IFAD) commodities exchange.  

During a high-profile launch event at Abu Dhabi Global Market (ADGM), attended

by His Highness, Sheikh Mansoor Bin Zayed Al Nahyan, Deputy Prime Minister and

Minister of Presidential Affairs, ICE, ADNOC and the partners in ICE Futures

Abu Dhabi, marked the start of trading for ADNOC’s Murban crude oil on ICE

Futures Abu Dhabi, a significant milestone for Abu Dhabi and the UAE in its

jubilee year.  

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, flexibility to hedge and manage risks

and increased access to Murban crude. For ADNOC, its flagship crude grade

becomes more available to a broader set of market participants 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. Representatives from the

partner companies joined today's launch event at ADGM, many participating

virtually from around the world.

Commemorating the new Murban Futures contract, His Excellency Dr. Sultan Al

Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing

Director and Group CEO, said: "This is a historic moment for ADNOC, Abu Dhabi,

and the UAE as we celebrate the launch of the IFAD exchange with ICE and, with

our partners, capitalize on the growing demand for high-quality Murban crude

oil, particularly from markets in Asia. This achievement is testament to the

vision and foresight of our wise leadership, who have supported this

progressive step that makes Murban crude a freely traded commodity that is more

widely available to buyers and traders around the world."

"The launch of the world's first Murban Futures contract makes our largest

crude grade even more attractive to the global market, enabling ADNOC's

customers and market participants to better price, manage and trade their

purchases of Murban. Murban Crude is recognized the world over for its

intrinsic chemical qualities, consistent and stable production volumes, large

number of international buyers, and numerous long-term concession and

production partners. 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."

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.

Discovered in 1958, Murban has played a pivotal role as the bedrock of the

UAE's sustained economic development. With the launch of IFAD and the new

Murban Futures Contract, it enters a new era, further solidifying Abu Dhabi's

position as a global energy hub and a reliable and essential energy provider to

the world.

ICE Murban Futures are physically delivered contracts, with one futures

contract equating to 1,000 barrels of Murban crude oil delivered from the ADNOC

Terminal located in Fujairah, on the East coast of the UAE. Murban is ADNOC's

flagship crude grade, with production capacity of over 2 million barrels per

day at present. It currently accounts for around 50% of the UAE's total

production capacity, with plans in place to increase the production of Murban

to more than 2.5 million barrels per day by 2030, in line with ADNOC's goal of

growing its production capacity to 5 million barrels of crude per day.

"The launch of IFAD represents a singular achievement, one that would not have

been realized without the vision, fortitude and years of work by His Excellency

Dr Sultan, his team at ADNOC, and the leadership of the UAE in opening up

Murban to the markets," said Jeffrey C. Sprecher, Founder, Chairman and CEO of

Intercontinental Exchange. "Today, with our outstanding partners, we are

bringing a new benchmark to life, and just as Murban has powered the UAE for

the past 50 years, with this new futures contract there is a tremendous future

ahead for Murban as a price marker for global energy markets."

H.E. Dr. Al Jaber will, later today, virtually ring the opening bell of the

iconic New York Stock Exchange, another of the international exchanges owned

and operated by ICE, to celebrate the launch of IFAD and the new Murban Futures

contract.

His Excellency Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of Abu

Dhabi Global Market, said: "Our sincere congratulations to the Intercontinental

Exchange, Abu Dhabi National Oil Company and the nine global energy companies,

on the successful launch of ICE Futures Abu Dhabi exchange (IFAD). This is the

first derivatives exchange in Abu Dhabi and set up at ADGM.  We are proud to be

the preferred jurisdiction of IFAD and home to the world's foremost Murban

Crude Oil Futures contract. The launch of ICE Futures Abu Dhabi further

reinforces Abu Dhabi's status as a global energy hub. We are fully supportive

of and look forward to the continuous achievements and growth of our home-grown

institutions, IFAD and the derivatives community in the UAE and beyond."

Murban Futures will trade globally on the ICE platform, one of the world's

foremost energy exchange networks. All trades clear through ICE Clear Europe,

based in London. From today, Murban now trades alongside ICE Brent and ICE WTI

in the ICE network.

ADNOC moved to forward pricing of its crude oil in March 2020 and previously

priced Murban using Platts Dubai to determine its official selling price (OSP).

The company will move its forward pricing mechanism for Murban to the ICE

Murban Futures Contract from June, coinciding with the first expiry of Murban

Futures.

Earlier this month, the company also confirmed that Upper Zakum, Das and Umm

Lulu grades will be priced at a differential to the announced Murban price.

While the new ICE Murban Futures Contract will be used to identify the price of

Murban two months ahead, ADNOC will announce the price for Upper Zakum, Das and

Umm Lulu crude grades early in the month before the month of loading (known as

M-1).

The market-based, forward pricing mechanism for ADNOC's Murban Crude enhances

the attractiveness of Murban, creating additional transparency and flexibility

for market participants and ADNOC's customers.

As the new home of Murban Futures, Abu Dhabi Global Market has quickly

established its place as a leading commodities trading center, and IFAD joins

two international market-facing trading entities, ADNOC Global Trading and

ADNOC Trading. The Murban Futures contract launches Abu Dhabi's mainstay crude

onto the global energy markets and strengthens the UAE position as an energy

hub and leader.

About ADNOC

ADNOC is a leading diversified energy and petrochemicals group wholly owned by

the Emirate of Abu Dhabi. ADNOC's objective is to maximize the value of the

Emirate's vast hydrocarbon reserves through responsible and sustainable

exploration and production to support the United Arab Emirates' economic growth

and diversification. To find out more, visit: www.adnoc.ae

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SOURCE  ADNOC

For media inquiries, please contact: Philip Robinson, Manager, ADNOC External

Relations, +971 (0) 50 504 4934, probinson@adnoc.ae