The framework agreement, the first-ever between both companies, was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Tengku Muhammad Taufik, President and Group CEO of Petronas.
H.E. Dr. Al Jaber said: “We are very pleased to partner with Petronas for the first time through this important framework agreement. The agreement is a natural evolution of the strong ties between the UAE and Malaysia and provides an opportunity to deepen the relationship through strategic energy cooperation.
“The agreement offers the potential for exciting opportunities for both companies to unlock and create value across the full oil and gas value chain as we shape our businesses for a post-Covid economy. We see significant potential in this agreement and look forward to converting it into mutually beneficial partnerships.”
Under the terms of the agreement, ADNOC and Petronas will jointly explore opportunities for collaboration in the exploration, development, and production of conventional and unconventional hydrocarbon resources in the Emirate of Abu Dhabi. This highlights the potential of Abu Dhabi’s vast untapped oil and gas resources and ADNOC’s approach to leveraging strategic partnerships to accelerate the exploration and development.
Tengku Muhammad Taufik said: “Petronas believes the collaboration with ADNOC bears strong testimony to the shared vision of both organisations to pursue value creation through progressive and cleaner energy solutions as we navigate the challenges of an accelerating energy transition. We look forward to working together with ADNOC to address growing energy demand in a responsible and sustainable way.”
The agreement will also enable both companies to jointly assess strategic opportunities for domestic and international collaboration across the downstream sector. Among the opportunities in Abu Dhabi is TA’ZIZ which is driving the development of industrial projects in Ruwais, Abu Dhabi and catalysing the UAE’s economic diversification, and in fuel oil bunkering and support of LNG bunkering vessels.
ADNOC and Petronas have also agreed to explore potential partnership opportunities in trading including optimisation of crude and feedstock supply and refined products offtake. In addition, they will look to collaborate to identify technology solutions as well as on hydrogen and research and development (R&D) in areas of mutual interest including enhanced hydrocarbon recovery and carbon capture utilisation and storage (CCUS).
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