The Abu Dhabi National Oil Company (ADNOC) signed a strategic framework 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 agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Yang Hua, Chairman of CNOOC.
H.E. Dr. Al Jaber 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."
ADNOC and CNOOC 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 in sour gas processing and treatment; delivering efficiency, performance and reliability for sour gas drilling operations; and improving field and reservoir development plans.
The parties will furthermore consider including Offshore Oil Engineering Co., Ltd. (COOEC) as a qualified contractor for EPC opportunities, and China Oilfield Services Ltd. (COSL) as a qualified supplier of oilfield services and explore potential opportunities to collaborate with both companies in existing and future offshore oil and gas field assets in Abu Dhabi.
In addition, ADNOC and CNOOC 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 agreed to analyse the potential of certain mutually beneficial business opportunities, including the potential collaboration in new integrated refining and petrochemical assets in China; cooperation in CNOOC’s existing refining assets; as well as a broader partnership and joint-investment across the refining and petrochemical value chain.
“The future collaboration opportunities agreed today with CNOOC reinforce ADNOC’s strategic approach to partners that offer technology, capital or market access to maximize 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," added H.E. Dr. Al Jaber.
Yang Hua 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. Both CNOOC and ADNOC will embrace broadened opportunities for future cooperation and enjoy the fruit of this mutually-beneficial partnership. 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 optimise the integrated industrial chain of upstream, mid and downstream. CNOOC will continue to implement the Belt and Road Initiative, strengthen energy cooperation and contribute more value to the China-Arab friendship as well as regional development.”