- Two of the worlds largest oil companies have signed a cooperation agreement to meet global demands for natural gas
- Saudi Aramco and UAE's ADNOC have been focusing on raising their gas production
ABU DHABI: The state energy giants of Saudi Arabia and the United Arab Emirates, Aramco and ADNOC, signed a cooperation deal Monday aimed at bolstering gas production and revenue.
The agreement was signed by CEO of Saudi Aramco Amin Hassan Al-Nasser and UAE Minister of State and CEO of ADNOC Group Sultan Ahmed Al-Jaber.
The framework deal saw the two biggest Arab oil firms agree to jointly explore investment opportunities and exchange technical expertise as they seek to tap into natural gas and Liquefied Natural Gas (LNG) markets.
The deal also follows an agreement between the two companies earlier this year to participate in an integrated refining and petrochemical project in India.
“This agreement focuses on attractive and valuable investment opportunities in the field of natural gas and liquefied natural gas and represents a collaborative framework between two global giants of the oil and gas industry,” said Al-Nasser.
“Enhancing cooperation with ADNOC will have a positive impact on the sustainability objectives and will benefit the two companies economically,” he said, adding “we have recently announced our intention to invest in a large-scale refinery on the western coast of India.”
“Saudi Aramco is expanding both conventional and non-conventional gas operations and this new agreement helps us accelerate growth in natural gas and liquefied natural gas, enhance our competitive advantage, diversify our business and expand our international gas investment activities,” Al-Nasser said.
Meanwhile, Al-Jaber said the UAE and Saudi Arabia have a close relationship based on history, vision and common strategic interests.
“Increased cooperation between ADNOC and Aramco will ensure greater energy security and long-term economic prosperity for both nations,” Al-Jaber said.
No further details on the specifics of the agreement were provided but the two companies have been focusing on raising their gas production.
Last week, UAE’s supreme petroleum council approved investments worth $132 billion over the next five years to boost oil and gas production.
Under the investment plan, both countries aim to become self sufficient in natural gas and later net exporters.
As part of its energy push, ADNOC on Sunday granted French major Total an exploration and production concession agreement for natural gas.
LNG is the fastest growing hydrocarbon at 4% per annum. Global demand for this gas is expected to exceed 500 million tons per year by 2035, up from the demand levels in 2017 which amounted to about 300 million tons.
The concession agreement aims at producing one billion cubic feet daily of gas by 2030.
ADNOC Gas LNG, a subsidiary of ADNOC, is a reliable supplier of LNG. It has a proven track record of 40 years in this field and accounts for 2% of the global market share of LNG.
* With AFP