Abu Dhabi National Oil Company (ADNOC) is looking to expand its energy trading business by increasing its footprint in Europe and Africa, reported Bloomberg, citing sources.
ADNOC wants to fill the gap left by Europe's shift away from Russian energy supplies, the sources said.
Set up in 2020, ADNOC Trading is a wholly owned subsidiary of ADNOC Group.
The United Arab Emirates (UAE)-based energy major is seeking long-term contracts for the delivery of liquefied natural gas (LNG), crude and refined fuels.
According to one of the sources, ADNOC plans to sign two to three long-term LNG supply deals along with several independent agreements over the course of next year.
Its main objective will be expanding in LNG, the report added.
The push in energy trading forms parts of its efforts to expand its operations across the globe.
Recently, German chemicals company Covestro commenced talks with ADNOC for a potential €11.6bn ($12.46bn) takeover.
Last year, ADNOC considered acquiring all or a part of trader Gunvor Group, which would have given it significant industry clout and access to supply contracts with commodity merchants.
However, the deal did not materialise and therefore the government-backed oil and gas giant is expanding its trade business from within.
Sources aware of the development said that by the end of 2024, ADNOC Trading plans to open its first European office, in Geneva, and an office in Houston in 2025.
The business already operates a Singapore branch that specialises in trading chemicals.
Although ADNOC produces ample crude on its own, it has also purchased oil from countries as distant as Norway and Australia as well as from Angola, Yemen and Nigeria.
At least one Russian cargo and many shipments of Kazakh crude oil have arrived at Ruwais, an oil refinery on the Persian Gulf.
ADNOC seeks to secure partnerships throughout Africa and Central Asia by leveraging relationships with local governments, the financial sector, and various religious and cultural ties, the report said.
Early this year, ADNOC secured a portion of a state fuel supply tender in Kenya.
