ADNOC signs agreement with CNPC to expand partnership

The Abu Dhabi National Oil Company, ADNOC, has signed a framework agreement with the China National Petroleum Corporation, CNPC, covering various areas of potential collaboration including offshore opportunities and sour gas development projects.

The agreement was signed by Dr. Sultan Al Jaber, Minister of State, and CEO of ADNOC Group, and Wang Yilin, CNPC Chairman. It covers discussions between the two companies on possible CNPC participation 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.

Dr. Al Jaber said, "In support of our 2030 smart growth strategy, we are focusing on creating the greatest value from our partnerships to capitalise on our oil and gas reserves and maximise the returns from our offshore assets.

"We are keen to work with partners who can share technology and capital, 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."

In February, ADNOC signed an agreement with CNPC, awarding it an 8 percent interest in Abu Dhabi’s onshore oil concession, operated by ADNOC Onshore. The agreement has a term of 40 years, backdated to 1st January, 2015.

Wang Yilin said, "This framework agreement marks a new stage in CNPC’s partnership with Abu Dhabi and ADNOC. We look forward to continuing the good faith discussions which have already taken place and making progress on strengthening our relationship with ADNOC."