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ABU DHABI / WAM
UAE Minister of State and Abu Dhabi National Oil Company (Adnoc) Group CEO, Dr Sultan Ahmed Al Jaber commented on market developments, noting that the UAE oil company is set to supply the market with over four million barrels of oil per day in April this year.
In a statement, Dr Al Jaber said, “Today, as a result of the steps we’ve taken over the last four years, Adnoc is far stronger and better positioned to respond to current market conditions. Our focus on driving performance, profitability and efficiency has made us more resilient, agile and responsive to market dynamics. These guiding principles remain unchanged as we move forward with projects across our value chain.”
“In line with our production capacity growth strategy announced by the Supreme Petroleum Council, we are in a position to supply the market with over four million barrels of oil per day (mbpd) in April. In addition, we will accelerate our planned five mbpd capacity target,” he affirmed.
“In response to market conditions,” Dr Al Jaber continued, “and to provide better forward visibility to our customers, Adnoc will shortly announce forward prices for the months of March and April. This decision has been made to ensure that our customers have visibility of the price so they can plan accordingly.”
“As announced in November 2019, Adnoc remains firmly committed to moving from its current retroactive pricing mechanism to a new forward pricing mechanism for its flagship Murban crude oil,” he added.
This will be traded on a new independent exchange, ICE Futures Abu Dhabi, which is expected to launch after the necessary regulatory approvals are obtained,” he added.
Dr Al Jaber concluded, “As planned, we remain committed to creating and maximising value from across our portfolio, while we advance our smart growth strategy.”
Al Mazrouei says deal between Opec+ key for balanced market
ABU DHABI / WAM
The UAE Minister of Energy and Industry Suhail bin Mohammed Al Mazrouei said that a new agreement between Opec+ country members is essential to support a balanced and less volatile market.
Al Mazrouei said, via a series of tweets, “Opec and Opec+ played an important role in delivering market stability. The UAE Ministry of Energy and Industry firmly believes that a new agreement is essential to support a balanced and less volatile market.”
The UAE minister’s remarks follow recent developments between Opec and non-Opec allies failing to agree on how much oil production to cut amid the coronavirus outbreak.
He went on to note that operators in the country have “ample production capacity that will be quickly brought online given the current circumstances.”
According to the Al Mazrouei’s official twitter account, the minister expressed his disappointment in the lack of agreement between Opec+. “We are disappointed that no agreement was reached by Opec + and the current declaration of cooperation will therefore expire at the end of March 2020,” the tweet read.