The Abu Dhabi National Oil (Adnoc) has signed an agreement with China National Offshore Oil (CNOOC) to collaborate in the upstream and downstream sectors and liquefied natural gas (LNG).
Adnoc Group CEO Sultan Ahmed Al Jaber and CNOOC chairman Yang Hua exchanged the Strategic Framework Agreement in the presence of Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan and Chinese President Xi Jinping.
The two companies agreed to share knowledge, best practices and technologies in ultra-sour gas development to improve operational efficiency in gas processing and treatment, deliver efficiency, performance and reliability for drilling operations and develop field and reservoir development plans.
They also decided to consider Offshore Oil Engineering for engineering, procurement and construction opportunities, China Oilfield Services for the supply of oilfield services, and explore collaboration opportunities in offshore oil and gas field assets in Abu Dhabi.
Adnoc and CNOOC will jointly explore LNG sales and purchase opportunities, share knowledge and expertise in LNG markets, as well as evaluate partnerships and joint investment opportunities in the LNG value chain.
In the downstream sector, they will analyse business opportunities, including collaboration in new integrated refining and petrochemical assets in China; cooperation in CNOOC’s refining assets; and a partnership and joint investment in the refining and petrochemical value chain.
Al Jaber said: “The future collaboration opportunities agreed today with CNOOC reinforce ADNOC’s strategic approach to partners that offer technology, capital or market access to maximise value from Abu Dhabi’s vast oil and gas resources.
“In addition, the collaboration opportunities underpin our 2030 smart growth strategy as well as our focus on key economies and Asian growth markets such as China.”
Adnoc intends to increase oil production capacity to five million barrels per day (bpd) by 2030 and continues to focus on downstream expansion in China and Asia, where petrochemicals and plastics demand is forecast to double by 2040.
Hua said that the agreement enables CNOOC to develop its overseas oil and gas business, diversify import resource and optimise the industrial chain of upstream, mid and downstream.
He said that CNOOC will continue the implementation of the Belt and Road Initiative, strengthen energy cooperation and contribute more value to the China-Arab friendship.