The agreement will see the UAE and Malaysian state-owned companies collaborate in the exploration, development, and production of conventional and unconventional hydrocarbon resources
The Abu Dhabi National Oil Company (ADNOC) has partnered with Petronas to explore oil and gas opportunities.
It marks the first-ever agreement between the UAE and Malaysian state-owned companies, with the firms collaborating in the exploration, development, and production of conventional and unconventional hydrocarbon resources in the Emirate of Abu Dhabi.
ADNOC claims this highlights the potential of Abu Dhabi’s “vast untapped oil and gas resources” and its approach to leveraging strategic partnerships to “accelerate the exploration and development”.
“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,” said Dr Sultan Ahmed Al Jaber, UAE minister of industry and advanced technology and ADNOC CEO.
“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.”
ADNOC and Petronas will collaborate to identify technology solutions for hydrogen
The agreement will also enable both companies to jointly assess strategic opportunities for domestic and international collaboration across the downstream sector, according to ADNOC.
It highlighted that amongst the opportunities 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 liquefied natural gas (LNG) bunkering vessels.
Petronas president and CEO 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 two firms have agreed to explore potential partnership opportunities in trading, including the optimisation of crude and feedstock supply and refined products offtake.
They will also collaborate to identify technology solutions on hydrogen as well as provide research and development (R&D) in areas of mutual interest, such as enhanced hydrocarbon recovery and carbon capture, utilisation and storage (CCUS).
ADNOC said the agreement underscores its expanded approach to strategic partnerships that is enabling it to “unlock and maximise value across its entire portfolio” as the firm aims to deliver its 2030 strategy to reduce greenhouse gas emissions by 25%.