The Abu Dhabi National Oil Company (ADNOC) has signed a partnership framework deal worth up to $12bn with China’s Wanhua Chemical Group for collaboration in the downstream sector, ADNOC said on Tuesday.
Downstream operations in the oil industry include refining, sales and shipping.
The agreement was signed during a three-day state visit to China by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.
ADNOC and Wanhua Chemical also signed a shipping joint venture agreement building on a 10-year LPG supply contract signed in November 2018, according to the statement.
“The potential total value of the collaboration between ADNOC and Wanhua is estimated to be up to $12bn,” the statement said.
Under the shipping joint venture, ADNOC Logistics & Services and Wanhua Chemical will establish a partnership for LPG transportation including the operation of two VLGCs, or Very Large Gas Carriers.
The two companies have also agreed to explore and develop joint venture opportunities in both countries, with the UAE partnership focusing on producing downstream derivatives, or those relating to refined oil products.