Abu Dhabi Intercontinental Exchange Starts Operations from Abu Dhabi Global

ADNOC officially launches trading of Murban futures contracts in the global markets

• Mansour bin Zayed while attending a ceremony held at the Abu Dhabi Global Market to mark the launch of contracts.

  WAM

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His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, yesterday witnessed a ceremony held at the Abu Dhabi Global Market, on the occasion of the launch of the Abu Dhabi National Oil Company (ADNOC) and the Intercontinental Exchange, officially, the global circulation of the distinguished UAE crude. Murban, as a futures contract on the new Abu Dhabi Intercontinental Futures Exchange, which commenced operations from the Abu Dhabi Global Market.

Historic decision

Mansour bin Zayed: - «A historic decision consolidating the UAE’s position in the energy markets and the global competitiveness map. - “The state is keen to keep abreast of the changes and developments in the energy sectors, based on the outlook for the future.”

His Highness Sheikh Mansour bin Zayed Al Nahyan praised the launch of the global circulation of UAE crude “Murban”, saying: “This historic decision is part of the UAE’s strategy and the vision of the wise leadership that aims to enhance the balance of economic achievements and consolidate the honorable position of the UAE and its prominence on Map of global competitiveness, and in support of its leading role internationally in the oil market, it is an essential resource, to ensure the continuation of distinguished development successes.

His Highness affirmed that “the state is keen to keep pace with the changes and developments of the energy sectors, based on forward-looking plans that are capable of achieving prosperity, progress and developing national wealth, in the service of the people of the Emirates and opening promising horizons for them.” It constitutes a central tributary and support to the national economy.

big accomplishment

For his part, the Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its Group of Companies, Dr. Sultan bin Ahmed Al Jaber, said in his speech at the launch event, “This step represents a major achievement for (ADNOC) and for the (Intercontinental Exchange), And for our customers and all our partners, as (the Abu Dhabi Intercontinental Futures Exchange) will contribute to strengthening the position of the Abu Dhabi Global Market, and establishing Abu Dhabi as a global center for commodity trading and trading.

Al-Jaber added that “From now on, the futures contracts for crude (Murban) will begin to be freely traded on all crude oil exchanges, from Singapore to London, and from Abu Dhabi to New York,” noting that “the futures contracts for (Murban) crude will be visible on the trading screens in every Place".

"These new contracts represent a qualitative value and a mutual benefit for all parties, as our customers will be able to better manage their purchases and risks, while we, as producers, will be able to strengthen our presence in the market," he stressed.

Favorite raw

Al-Jaber stated that "since the founding of the UAE, our production of distinguished (Murban) crude has contributed to pushing forward the march of growth, development and progress."

He explained that «the beginnings of (Murban) were modest, from one oil field with a capacity of 4000 barrels per day in 1958, today we are producing (Murban) from more than 2000 wells distributed over 12 fields, this crude represents more than half of the total UAE production of oil. .

He added, “Through the vision and directives of the wise leadership, Murban has become today the preferred crude in many global markets, especially in Asia, and it is the preferred crude for more than 60 customers in 30 countries, due to its high quality, reliable and stable supplies, and our ability to increase its production. To meet the growing demand ».

more attractive

Al-Jaber stated that “with the increase in energy demand, and the world's endeavor to reduce carbon emissions, (Murban) will become more attractive and popular as a low-carbon ore, as levels of carbon emissions from (Murban) crude are less than half of the average emissions in the global oil and gas sector. ».

He said, "From now on, we will add trade and trading to our business portfolio, in order to achieve maximum value from every barrel of oil we produce, and to create sustainable benefits for Abu Dhabi, the UAE and the world as a whole."

status

In turn, the Minister of State and Chairman of the Board of Directors of Abu Dhabi Global Market, Ahmed Al-Sayegh, said that “(Abu Dhabi Intercontinental Exchange) is the first derivative exchange in Abu Dhabi, and we are also witnessing the first time trading of (Murban) crude in Abu Dhabi as futures contracts to establish its position next to global oil price standards. ».

He added, "There is no doubt that the establishment of the (Abu Dhabi Intercontinental Exchange) and the start of trading futures contracts for (Murban) crude are very welcome in the energy sector and trading around the world," noting that this heralds a new phase in the energy sector locally and globally.

facilitation

Al-Sayegh emphasized the keenness of the Financial Services Regulatory Authority at the Abu Dhabi Global Market to "facilitate investor access to the (Abu Dhabi Intercontinental Exchange for Futures Contracts), by working with regulators from all over the world to obtain the relevant recognitions and supervisory arrangements."

He explained that «these entities include the Financial Conduct Authority in the United Kingdom, which granted recognition to (Abu Dhabi Intercontinental) as an investment exchange based outside the Kingdom, in addition to the American Commodities Trading Commission, the Monetary Authority in Singapore and the Swiss Supervisory Authority on financial markets, as well as the Bank of England and many others. From other sides ».

Options

Al-Sayegh added: “Investors within the Abu Dhabi Global Market and in France, Norway, Australia, Japan and South Korea will be able to access and trade in the Abu Dhabi Intercontinental Exchange.”

He pointed out that, through the global infrastructure of the Abu Dhabi market, the pioneers of the oil and energy sector will be able to access the stock exchange and trade Murban crude futures contracts and other monetary derivatives while effectively managing their risks, indicating that creating a secondary market and providing price differentials between commodities , They will give these participants more options to manage risk and strike deals.

Support

Al-Sayegh pointed out that the Abu Dhabi Global Market is an open judicial authority that not only promotes the effective flow of capital, but also supports financial intermediation and facilitates global communication.

He added, "We are also in the market supporting innovation, and we are keen to provide a customer-focused business platform that enables investors to develop their businesses and grow and allows them to manage their diverse needs."

Quantum leap

It is noteworthy that the new step is a major achievement for the Emirate of Abu Dhabi and the UAE, coinciding with the state’s celebrations of its golden jubilee, and an embodiment of the qualitative shift that ADNOC is implementing to enhance its focus on markets and customers. Brent and West Texas Intermediate crude, providing more transparency and precaution to customers and buyers, and enables them to better price, trade and manage their crude oil needs. This step also allows ADNOC to deliver Murban crude to the broadest segment of the participating parties. And actor in the global market.

Pricing

By launching Murban futures contracts in the global markets, the exchange provides a new price index for oil in addition to standard global crude oil, such as: "Brent" and "West Texas Intermediate".

The determination of a future price for "Murban" crude will be based, at present, on the prices of the Dubai crude "Platts" market.

Murban crude will be priced as a delivery contract for a period of two months in the future, while the delivery of the contract to customers will be on the basis of sale and delivery on board the ship «FOB» in the Emirate of Fujairah, where clearing operations on the Intercontinental Exchange allow to benefit from the compensation margin, and to enhance the efficiency of capital. For traders.

9 companies

The Abu Dhabi Intercontinental Exchange Futures Exchange obtained the necessary regulatory approvals from the Bank of England and the Monetary Authority of Singapore, the United States, Switzerland, the Netherlands, France, Norway, Australia, Japan, and South Korea.

Previously, a partnership was announced between Abu Dhabi National Oil Company (ADNOC) and nine of the largest oil companies in the project to launch the exchange. The exchange also agreed to 24 members, of whom 18 will be clearing members.

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