Abu Dhabi National Oil Company (Adnoc) signed on Monday an agreement with China National Offshore Oil Corporation (Cnooc) to explore new opportunities for collaboration in both the upstream and downstream sectors as well as in LNG.
The companies have also agreed to share knowledge, best practices and latest proven technologies in the area of ultra-sour gas development with the aim of improving operational efficiency, a statement said.
The parties have agreed to jointly explore potential LNG sales and purchase opportunities, sharing specific knowledge and expertise in LNG markets, and evaluate potential partnerships and joint-investment opportunities across the entire LNG value chain.
In the downstream space, Adnoc and Cnooc have also agreed to analyze the potential of certain mutually beneficial business opportunities, including collaboration in new integrated refining and petrochemical assets in China, the statement said.
Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, said: “This far-reaching framework agreement underpins the close economic ties between the UAE and China, and offers exciting new growth opportunities as well as mutually beneficial investment initiatives between Adnoc and Cnooc, while enabling wider potential for strategic collaboration in both the upstream and downstream.”
Yang Hua, chairman of Cnooc, said: “The agreement will further deepen China’s energy cooperation with countries along the Belt and Road route, building a closer community of shared future in the energy sector.
“The agreement is of great significance for Cnooc to promote the development of its overseas oil and gas business, to diversify import resource and to optimize the integrated industrial chain of upstream, mid and downstream.”
Over the last two years, Adnoc said it has significantly expanded its strategic partnership and co-investment model and created new investment opportunities across all areas of its value chain, while at the same time, more proactively managing its portfolio of assets and capital.
Adnoc’s planned oil production capacity increase to 5 million barrels per day by 2030, its drive towards gas self-sufficiency and becoming a potential gas net exporter, as well as its substantial downstream expansion plans, offer new opportunities for international partnerships, it added.
China is the world’s second largest economy and largest oil importer, with the UAE representing one of the key suppliers. While China grows its domestic refining capacity and fills its strategic inventories, the country continues to secure global crude supplies.