Abu Dhabi National Company (ADNOC) and Petroleum Nasional Berhad (PETRONAS) inked an agreement for collaboration in the full oil and gas value chain. The agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, Tengku Muhammad Taufik and Group CEO of PETRONAS.
It has been believed after the strategic alliance PETRONAS will now look after opportunities for collaboration, exploration, development along with the production of Abu Dhabi’s significant conventional along with unconventional resources.
During the event, Dr. Al Jaber explained that they were pleased to partner with this Malaysian company. Meanwhile, he also stated that this agreement will further strengthen the tie between the UAE and Malaysia providing additional opportunity to deepen the relationship through strategic energy-based cooperation.
As per the terms of the agreement, PETRONAS and ADNOC will work jointly to explore opportunities for collaboration in exploring, developing, and producing conventional and unconventional hydrocarbon resources in Abu Dhabi. This agreement will be creating opportunities for both the companies to explore value creation over the full oil and gas value chain as they would shape the business for the post-Covid economy.
Tengku Muhammad Taufik, CEO of PETRONAS explained that they believed that the collaboration with ADNOC will bear stronger testimony to a shared vision of both of the organizations to achieve value creation through progressive and cleaner energy solutions. Further, he stated that they had been looking forward to working together with ADNOC to address growing energy demand sustainably and responsibly. Both the companies have been aiming for the identification of technology-based solutions with hydrogen, enhanced hydrocarbon recovery along with carbon capture, storage, and utilization procedures.
This is stated to be the first agreement between both companies and it has been believed that this MOU would be a significant milestone in UAE-Malaysia bilateral relationship building process. Petronas is a Malaysian energy company that is spread over 50 countries globally. It is engaged in a diverse range of oil businesses like fuel, lubricants, and petrochemicals.
ADNOC has been aggressive to business expansion recently. Earlier, ADNOC added six VLCCs with the aim of global reach through the strategic move.