The UAE's Abu Dhabi National Oil Company (ADNOC) and India's Reliance Industries Ltd (RIL) have signed a framework agreement for upstream collaboration and decarbonisation of operations across the hydrocarbon value chain.

RIL said in a stock exchange statement that its Chairman and Managing Director Mukesh Ambani and Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO exchanged a 'signed framework agreement' to explore collaboration in exploration, development and production of conventional and unconventional resources in Abu Dhabi.

The agreement also covers decarbonisation of operations, including carbon dioxide (CO2) sequestration.

The agreement was exchanged on Tuesday during the signing of a formal shareholder agreement between Abu Dhabi Chemicals Derivatives Co., or TA’ZIZ, and RIL for their $2 billion joint venture chemicals production facility.

The statement noted that Reliance discussed collaboration with Abu Dhabi-based renewable energy company Masdar in the context of goals set by both countries in renewable energy and green hydrogen.

(Reporting by Anoop Menon; editing by Seban Scaria)