French energy giant TotalEnergies has partnered with the Abu Dhabi National Oil Company (ADNOC) to explore growth opportunities across the energy value chain in the UAE.
As per the strategic agreement, the two firms will jointly explore and collaborate in areas such as the development of oil and gas projects in the UAE to ensure global energy security.
The collaboration will also focus on diesel supply to France from the UAE, and a commercial carbon capture, utilisation, and storage (CCUS) project in the Middle Eastern country.
UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Dr. Sultan Ahmed Al Jaber said: “We look forward to working with TotalEnergies to unlock the opportunities presented by the agreement across the energy value chain to enable more secure, affordable, and sustainable energy for our countries and the world.”
TotalEnergies chairman and CEO Patrick Pouyanné said: “Our partnership across the entire energy value chain allows our two companies to join forces to contribute to the energy supply of global markets while reducing carbon emissions from our operations.”
The deal expands the strategic alliance between the two companies and comes amid rising concerns about global energy security as a result of Western sanctions on Russia in response to its Ukraine offensive.
The partnership agreement also follows the signing of the UAE-France Comprehensive Strategic Energy Partnership (CSEP) by the two countries, which aims to enhance energy affordability, energy security, and decarbonisation.
Last year, TotalEnergies’ equity production in the UAE stood at 280,000 barrels of oil equivalent per day.
In separate announcement, another French company, Technip Energies, and the UAE’s National Petroleum Construction (NPCC), a subsidiary of National Marine Dredging Company (The Group), have agreed to form the joint venture NT ENERGIES LLC to support energy transition.
The Abu Dhabi-based venture will provide offshore and onshore oil and gas fields and facilities services, oil and gas facilities consultancy, oil tanks installation and repair, installation, maintenance and manufacturing of alternative energy equipment, and engineering consultations on alternative energy and research.
It also will also provide services related to blue and green hydrogen and associated decarbonisation projects, and CO₂ capture, among others, to support the energy transition in the country, the broader Middle East region, and North Africa.
Earlier this month, TotalEnergies announced that it was planning to withdraw from the Kharyaga oil project in Russia.