Abu Dhabi National Oil Company (Adnoc) is considering the possibility of selling a new heavier crude oil grade in a bid to boost profits, reported Bloomberg, citing sources.
The top oil producer in the United Arab Emirates (UAE) is considering the introduction of a new blend, possibly sourced from multiple offshore deposits, by the end of next year at the earliest, sources said.
This new grade, which could be named Ghasha after one of the offshore fields, would be launched once the related developments increase production.
Currently, Adnoc is assessing market demand and evaluating if there is enough supply to justify its launch, they added.
The oil major declined to comment on the development.
According to the sources, creating the new grade of crude oil could serve multiple purposes such as maintaining the quality of Adnoc’s other offshore crudes by eliminating heavier barrels.
In addition, it could fill the market gap for crude that is not as light as the UAE’s existing blends.
The company could also decide against the plan and in that case, it would be mixed with one of the current grades.
Adnoc is investing heavily to increase its crude production capacity by 25% to reach 5 million barrels per day by 2027.
This expansion comes as it tries to grow its natural gas and chemicals industry and strives to reduce its impact on the environment.
Since 2021, Adnoc has enabled the unrestricted trading of its flagship crude, Murban, on an exchange in Abu Dhabi.
According to the publication, the company aims to achieve the same status for the Upper Zakum grade, which is currently produced offshore along with Das and Umm Lulu crudes in smaller quantities.
Furthermore, Adnoc intends for Murban to become a benchmark for trading, similar to Brent.
Earlier this month, Adnoc joined forces with Baker Hughes to develop and commercialise green hydrogen and graphene technology solutions.