UAE’s ADNOC and China’s CNPC signed a wide-ranging strategic co-operation agreement that extends and deepens the energy partnership between the two countries.
The framework agreement outlines opportunities for possible future collaboration across ADNOC’s upstream and downstream value chains and support for China’s growing energy needs, the Abu Dhabi energy giant said in a statement.
Under the new agreement, ADNOC and CNPC will explore potential Chinese investment in a number of the planned downstream projects, including an aromatics plant, a mixed feed cracker and a new refinery. The two companies will also discuss partnership opportunities in one, or more, of CNPC’s downstream assets in China as part of ADNOC’s international growth strategy.
Upstream, ADNOC and CNPC will look at potential exploration and development prospects across Abu Dhabi, including the six geographical oil and gas blocks made available for competitive bidding earlier this year, as well as the possibility of establishing a technology hub linked to the Al Yasat concession, in which CNPC has a 40 percent stake. The hub would facilitate the transfer of knowledge and technology related to the Al Yasat concession.
Discussions will also take place around the possibility of storing ADNOC crude oil in China; long term crude supply arrangements; and a trading partnership for ADNOC’s refined and petrochemical products.
The deal was witnessed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and Deputy Supreme Commander of the UAE Armed Forces, and President Xi Jinping, of the People’s Republic of China, during the latter’s visit to the UAE.
The agreement was signed by His Highness Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Wang Yilin, Chairman of CNPC, builds on the existing partnership between ADNOC and CNPC.
Dr. Al Jaber said: “China is the world’s largest growth market and we are keen to explore mutually beneficial opportunities, along the full hydrocarbon business value chain, in both the UAE and China. With CNPC, we will assess possible investment and partnership options that have the potential to create more value from our oil and gas resources and give greater access to the Chinese market, while also helping support China in meeting its expanding energy needs.
“CNPC is one of a number of prospective partners who have expressed a strong interest in working with us on the range of co-investment and partnership opportunities we have identified as part of our 2030 strategy. In particular, our announced plans to expand our refining and petrochemical operations have captured the attention of investors from around the world. We will continue to review the options available to us, as we accelerate our transformation.”
H.E. Wang Yilin said: “This agreement marks an exciting new phase in the relationship between CNPC and ADNOC. It creates a clear framework for both parties to explore potential partnership opportunities that could deliver significant mutual benefits. ADNOC is a trusted and reliable energy supplier, and we believe an enhanced level of collaboration would help ADNOC maximise the value of its assets and resources, while also contributing to China’s energy security.”