Abu Dhabi to launch platform for oil companies

Officials inspect pipeline in Abu Dhabi. WAM

The Abu Dhabi Petroleum Products Regulatory Committee continues its efforts to strengthen security measures in the emirate, ensuring that operators and stakeholders comply with federal and local regulations and decisions.

In this regard, Dr. Saif Saeed Al Qubaisi, Acting Director General of Regulatory Affairs at the Department of Energy, stated: “The Committee will launch a consultation and communication platform with customers and companies operating in the petroleum products sector in the Emirates of Abu Dhabi to facilitate the exchange of technical knowledge and understanding of stakeholder needs. The DoE will develop the requirements, procedures and working mechanism for this platform.

Al Qubaisi said: “The objective of the Committee is to enable entities involved in the trade of petroleum products in the emirate of Abu Dhabi to cooperate effectively in implementing the regulatory framework for these activities in accordance with the relevant regulations issued.

This includes Federal Law No. (14) of 2017 and its implementing regulations issued pursuant to Cabinet Resolution No. (35) of 2019, as well as Law No. (5) of 2023 regarding the regulation of these activities in the Emirate of Abu Dhabi.”

Dr Al Qubaisi added: “The committee regulates these activities in Abu Dhabi in line with international best practices. It examines all related issues and topics and presents its proposals to the Department of Energy (DoE), in particular regarding the assessment of activities involving trade in these products, which include hydrocarbon gas and all petroleum derivatives except crude oil. The committee also proposes programmes, initiatives and projects related to the regulation of trade in these products.”

He continued: “In accordance with the Committee’s charter, four working groups have emerged under the supervision of the DoE’s technical sector. Each working group is composed of representatives from different Committee member entities. The mandate of each group focuses on permitting, inspection and enforcement, legislation and legal matters, and data and information technology, respectively.”

In addition, Dr. Al Qubaisi indicated that the Committee examines and analyzes periodic reports on the trade of these products and their performance indicators and makes appropriate recommendations. These reports include trade permits issued, compliance indicators of public entities in this sector, violations, fines and related necessary procedures to monitor compliance by establishments and individuals with licenses, permits and related conditions and standards.

Dr Al Qubaisi stressed that the regulations governing the trade in petroleum products cover a range of activities and processes, from importing these products into a country or manufacturing them, to their storage, packaging, transportation, marketing, distribution, offering for sale, selling, purchasing or supplying them to others.

Murban Crude Oil Trading Up: Intercontinental Exchange on Sunday reported record trading activity for Murban crude oil in the second quarter of 2024. ICE Futures Abu Dhabi (IFAD) and ICE’s Murban futures market were launched in Abu Dhabi in March 2021 with Adnoc and nine of the world’s largest energy traders as founding partners. Murban is the UAE’s flagship crude oil grade, supplied by Adnoc to meet global demand and considered one of the lowest-carbon crudes in the world.

In the second quarter of 2024, the ICE Murban crude oil futures market achieved record trading volume with over 1.5 million contracts traded, equivalent to 1.5 billion barrels of Murban crude oil, an increase of over 160% since the beginning of 2024.

Throughout June, Murban crude oil futures saw a series of days with record trading volumes, including a record day on June 10, 2024, when 57,300 contracts were traded, equivalent to 57.3 million barrels.

In addition, the average daily trading volume for Murban futures in June reached a record 31,000 contracts, equivalent to 31 million barrels.

Since the launch of IFAD, 7.4 billion barrels of Murban crude oil have been traded and 267 million barrels of Murban have been delivered through IFAD. More than 160 participants have traded on IFAD so far from across Asia, the United States, Europe and the Middle East, including commercial and financial participants.

Murban is part of ICE’s global oil complex of more than 800 futures and options contracts centered around Brent crude, which is used to price more than three-quarters of the world’s internationally traded oil. ICE’s extensive global commodity markets, including benchmark crude oil and natural gas contracts, achieved record trading activity in the second quarter of 2024 with more than 305 million contracts traded, underlining IFAD’s continued success.