Abu Dhabi: The Abu Dhabi National Oil Company (ADNOC) on Monday signed the 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 (liquefied natural gas).
The exchange of the signed agreement was witnessed by His Highness Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces along with Chinese president Xi Jinping.
“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,” said Dr Sultan Ahmad Al Jaber, UAE Minister of State and ADNOC Group chief executive officer, during the signing.
“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,” he added, also highlighting how this was part of Abu Dhabi’s strategic focus with growing markets in Asia.
ADNOC and CNOOC 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.
The parties will also 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.
CNOOC chairman Yang Hua, commenting on the new agreement said the framework came in line with China’s Belt and Road Initiative.
“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… CNOOC will continue to implement the Belt and Road Initiative, strengthen energy cooperation and contribute more value to the China-Arab friendship,” he added.