UAE and China sign strategic oil and gas agreement

The Abu Dhabi National Oil Company (ADNOC) and the China National Offshore Oil Corporation (CNOOC) have signed an agreement to explore opportunities and share knowledge and expertise in upstream and downstream sectors and in liquefied natural gas (LNG).

The deal was signed in the presence of Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and China’s President Xi Jinping.

Read: In pics: Sheikh Mohamed bin Zayed meets Chinese President Xi Jinping in Beijing

The agreement is of significance given that ADNOC plans to increase its production to five million barrels per day by 2030.

China, on the other hand, is the world’s largest oil importer, with the UAE being one of its key suppliers.

By way of the agreement, China’s Offshore Oil Engineering Company (COOEC) and China Oilfield Services will be considered for potential collaboration on offshore and oil and gas field assets in Abu Dhabi.

ADNOC and CNOOC will also explore collaborating on new integrated refining and petrochemical assets in China in the downstream sector and also cooperate in CNOOC’s existing refining assets.

Demand for petrochemicals and plastics in the downstream sector of China and Asia is expected to double by 2040.

The two companies will also jointly explore investment opportunities across the entire LNG value chain.

Sultan Ahmed Al Jaber, UAE’s minister of State and ADNOC group CEO said: “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.

“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.”

Yang Hua, chairman of CNOOC said: “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.”

The Abu Dhabi Crown Prince is on a three-day state visit to China. Also on the sidelines of the visit, earlier today, Dubai’s Emaar Properties signed an agreement with Beijing Daxing International Airport to implement an $11bn project that includes residential and leisure facilities.

Read: Dubai’s Emaar, Beijing Daxing airport sign deal for $11bn project