New ADNOC-CNPC agreement on offshore and gas

New ADNOC-CNPC agreement on offshore and gas

Editorial Staff
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The agreement signed at ADIPEC expands collaboration ties between the Chinese company and the Abu Dhabi oil company previously established by a partnership agreement signed in February 2017

The Abu Dhabi National Petroleum Company (ANOC) has signed a framework agreement with the China National Petroleum Corporation (CNPC) covering various areas of potential collaboration, particularly in the offshore and sour gas sector. The Memorandum of Understanding was signed by United Arab Emirates Minister of State and Chief Executive Officer of ADNOC Group Sultan Ahmed Al Jaber and CNPC Chairman Wang Yilin. The MoU also mentions possible participation by CNPC in the Lower Zakum, Umm Shaif, and Nasr concession areas and the Bab, Bu Hasa, Ghasha, and Hail sour gas development projects, as well as other related projects. "We are keen to work with partners who can share technology and capital - said Al Jaber - to enable market access. Equally, we want partners who can deploy world-class engineering solutions for our mutual benefit, ultimately enabling us to drive a more profitable upstream business and strong returns to Abu Dhabi and the wider UAE." Wang Yilin stated that the agreement "marks a new stage in CNPC’s partnership with Abu Dhabi and ADNOC." He said: "We look forward to continuing the good faith discussions which have already taken place and making progress on strengthening our relationship with ADNOC." ADNOC had already signed an agreement with CNPC in February 2017, which awarded the Chinese company an 8% interest in Abu Dhabi’s onshore oil concession operated by ADNOC Onshore. The agreement has a term of 40 years.