Abu Dhabi National Oil Company (ADNOC) has announced a deal to sell 528,000 tonnes of liquefied petroleum to Dutch energy trader Vitol annually over the next 10 years.
The agreement, which is backdated to January 1, 2017 and will expire on December 31, 2026, was signed at a conference in London, ADNOC said.
“ADNOC has implemented a new strategy toward its LPG sales by negotiating longer term contracts to cope with the oversupply market especially after the Shale Gas Revolution,” the company’s sales and marketing director, Abdulla Salem Al Dhaheri, said.
“This agreement, which strengthens the long-standing relationship between ADNOC and Vitol, is a prime example of the innovative and different thinking we are bringing to our business deals.”
Vitol, which operates an independent refinery in Fujairah, trades and distributes more than 6 million barrels per day or crude oil and products and 10 million tonnes of LPG annually.
It has 15.5 million cubic metres of storage across six continents, 390,000 bpd of refining capacity and a downstream business in 16 African countries and Australia.
Earlier this week, ADNOC awarded shares in an onshore oil concession to CEFC China Energy Co and CNPC for fees of $900m and $1.8bn respectively.