Murban crude oil is powering progress in UAE - GulfToday

Murban crude oil is powering progress in UAE

Murban crude oil

Murban provides the energy that contributes towards the UAE’s economy, create jobs, and drive socio-economic development. Reuters

Every day, motorists across the length and breadth of the UAE fill their vehicles with fuel, and protect their engines with lubricants, supplied by Adnoc  Distribution, the UAE’s largest fuel and convenience retailer, and benefit from one of Abu Dhabi’s greatest national treasures - Murban crude oil.

First discovered in Abu Dhabi in 1958, Murban provides the energy, from well to wheel, that contributes towards the UAE’s economy, create jobs, and drive socio-economic development. It is also present in the fuels and lubricants sold at Adnoc Distribution’s 445 service stations, and powers flights in and out of the UAE, when refined as aviation fuel.

Ahmed Al Shamsi, Acting CEO of Adnoc Distribution, said the company takes great pride in the fact that its products are produced using Murban, a true treasure of the nation.

“Working alongside our largest shareholder, Adnoc, allows us to supply world-class fuels and lubricants to our customers, who when they fill up at our service stations, can be confident what they have purchased is of the highest quality,” Al Shamsi said.

Today, Murban crude and products made predominantly using Murban, are exported to more than 30 countries around the world by Adnoc, including 14 countries to which Adnoc Distribution also sells its Voyager range of high-quality lubricants. Voyager is produced using base oil that is refined from Murban crude.

Following the launch of the new Murban Futures contract, on 29th March 2021, Adnoc’s flagship crude is now even more accessible to customers around the world, which is a significant step in Adnoc’s strategy to create greater value for the benefit of everyone in the UAE.

The only fuel and convenience retailer to operate in all seven emirates, Adnoc Distribution’s fuels are refined by Adnoc Refining, where Murban is a key raw material at its complex in Ruwais, in the emirate of Abu Dhabi.

Ruwais is also where Adnoc Distribution’s Group II and III base oils are produced for lubricants. These base oils are used by Adnoc Distribution in its blending and packaging plant where its high-quality lubricant products are made for sale at service stations across the UAE and for export.

A high-quality oil, extracted via a lower carbon intensity production process by Adnoc Onshore, Murban is the UAE’s largest crude by volume, with a daily production capacity of up to 2 million barrels.

The Abu Dhabi National Oil Company (Adnoc) and Intercontinental Exchange (ICE) on Monday, 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 Sheikh Mansour 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, flexibilty 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 Monday’s launch event at ADGM, many participating virtually from around the world.

In attendance also were Suhail Bin Mohammed Al Mazrouei, Cabinet Member and Minister of Energy and Infrastructure,Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director of Mubadala Investment Company, Jassim Mohammed Buatabh Al Zaabi, Chairman of the Department of Finance, Awaidha Murshed Ali Al Marar, Chairman of the Abu Dhabi Department of Energy, Khalifa Al Suwaidi, Chairman of ICE Futures Abu Dhabi (IFAD), in addition to representatives of partner companies.

Commending the landmark launch of Murban Futures Contracts, Sheikh Mansour said:’’This historic decision falls within the strategy of the UAE and the vision of the wise leadership, which aims to increase the economic achievements and consolidate the honorable position of the UAE and its leadership on the global competitiveness map, and in support of its leading role internationally in the oil market, as a basic resource, in order to ensure the continuation of distinguished development successes.’’

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