Abu Dhabi National Oil Co. and China National Petroleum Corp. have signed a “strategic cooperation framework agreement” covering oil and gas opportunities beyond those in which they already work together.
A press statement said the agreement “outlines opportunities for possible future collaboration across ADNOC’s upstream and downstream value chains and support for China’s growing energy needs.”
It mentions exploration and production, technology support and transfer, research and development, drilling and oil field services, refining, petrochemicals, and crude oil supply and storage.
The statement said ADNOC and CNPC will “explore potential Chinese investment in a number of planned downstream projects, including an aromatics plant, a mixed-feed cracker, and a new refinery.”
The companies also will discuss ADNOC partnership in one or more downstream projects in China.
Upstream discussion will examine prospects across Abu Dhabi, including six blocks made available for competitive bidding in April (OGJ Online, Apr. 10, 2018).
Also due study is a technology hub linked to the Al Yasat concession, in which CNPC holds a 40% interest.
Before announcement of the agreement, ADNOC let contracts to CNPC for a large 3D seismic survey assessing geology as deep as 25,000 ft (OGJ Online, July 19, 2018).
In addition to the Al Yasat joint venture, CNPC has a minority stake in Abu Dhabi’s onshore concession and 10% interests in the Umm Shaif and Nasr and Lower Zakum offshore concessions.
And a CNPC affiliate, China Petroleum Engineering & Construction Corp., has an engineering, procurement, and construction contract with ADNOC for work on expansion of production capacity of onshore Bab field.
