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|20 July, 2018

Abu Dhabi Adnoc, CNPC to explore key business opportunities

Agreement builds on existing partnership between two oil majors and establishes mechanism to explore expanded relationship

An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018.

An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018.

REUTERS/Christopher Pike

Abu Dhabi National Oil Company (Adnoc) and China National Petroleum Corporation (CNPC) signed of a wide-ranging strategic cooperation framework agreement that extends and deepens the strategic energy partnership between the UAE and China.

The signing was witnessed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and Deputy Supreme Commander of the UAE Armed Forces; and Chinese President Xi Jinping.

The agreement outlines opportunities for possible future collaboration across Adnoc's upstream and downstream value chains and support for China's growing energy needs.

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The agreement, which was signed by Dr Sultan bin Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and Wang Yilin, chairman of CNPC, builds on the existing partnership between Adnoc and CNPC. It establishes a mechanism to explore an expanded relationship across multiple industry sectors.

Dr Al Jaber said: "China is the world's largest growth market and we are keen to explore mutually beneficial opportunities, along the full hydrocarbon business value chain, in both the UAE and China. With CNPC, we will assess possible investment and partnership options that have the potential to create more value from our oil and gas resources and give greater access to the Chinese market, while also helping support China in meeting its expanding energy needs.

"CNPC is one of a number of prospective partners who have expressed a strong interest in working with us on the range of co-investment and partnership opportunities we have identified as part of our 2030 strategy. In particular, our announced plans to expand our refining and petrochemical operations have captured the attention of investors from around the world. We will continue to review the options available to us, as we accelerate our transformation."

Wang said: "This agreement marks an exciting new phase in the relationship between CNPC and Adnoc. It creates a clear framework for both parties to explore potential partnership opportunities that could deliver significant mutual benefits. Adnoc is a trusted and reliable energy supplier, and we believe an enhanced level of collaboration would help Adnoc maximise the value of its assets and resources, while also contributing to China's energy security."

Under the agreement, Adnoc and CNPC will explore potential Chinese investment in a number of the planned downstream projects, including an aromatics plant, a mixed feed cracker and a new refinery. The two companies will also discuss partnership opportunities in one, or more, of CNPC's Downstream assets in China as part of Adnoc's international growth strategy.

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