Abu Dhabi National Oil Company, ADNOC, and Malaysian oil and gas firm, Petronas, will explore opportunities across the oil and gas value chain, following the signing of an agreement to collaborate in the exploration, development and production of conventional and unconventional hydrocarbons in Abu Dhabi.
Both companies will expand the scope of their co-operation to the downstream sector. They will also identify areas for research and development in clean technologies, particularly hydrogen and carbon capture, utilisation and storage.
Petronas will also look at opportunities in fuel bunkering, particularly in the use of liquefied natural gas as a cleaner fuel for use in vessels.
At ADNOC, hydrogen is being prioritised as a clean alternative fuel. Blue hydrogen is formed when natural gas is split via steam methane reforming, and the Abu Dhabi company intends to increase production of it.
UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group Chief Executive, Dr Sultan Al Jaber, said: “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,” he added.
The UAE accounts for 4.2% of global production of oil, much of it from oil fields owned and operated by ADNOC. The Abu Dhabi firm plans to increase its production capacity, which is just above 4 million barrels per day to 5m bpd by 2030.
The company has invited several international oil and gas companies to participate in developing its hydrocarbon resources. It plans to spend Dh448 billion ($122bn) over the next five years, of which Dh160bn will be directed towards the local economy.