Adnoc, Cnooc Strike Co-op Deal

Chinese oil and gas producer Cnooc has signed a framework deal with UAE counterpart Adnoc to explore new opportunities for co-operating across the upstream and downstream, and also in LNG trade.

According to a July 22 report by the state-backed China News Agency, the pair have agreed to share expertise and technologies used in exploiting ultra-sour natural gas fields. Under the pact, they will also consider LNG sales and purchase agreements, and discuss joint investments across the LNG value chain.

In addition, the two sides will look at using two of Cnooc’s engineering arms as contractors for design, purchase and construction work and the supply of oilfield services for Adnoc. They will also evaluate potential investments in Cnooc’s existing downstream operations.

“This far-reaching framework agreement underpins the close economic ties between the UAE and China, and offers exciting new growth opportunities as well as mutually beneficial investment initiatives between Adnoc and Cnooc,” Sultan Ahmad Al Jaber, Adnoc's CEO, commented during a signing ceremony.