CNOOC and ADNOC ink new agreement on oil refining and LNG trade

China National Offshore Oil Co (CNOOC) and Abu Dhabi National Oil Co (ADNOC) have recently signed a memorandum of understanding (MOU) for liquefied natural gas (LNG) trade, oil refining as well as upstream exploration & development activities. 
Evidently, under terms of the agreement the companies will share their respective knowledge and expertise to develop ultra-acidic natural gas fields.
Dr Sultan Ahmad Al Jaber, UAE Minister of State and ADNOC CEO was quoted saying that this expansive framework agreement reinforces the strong economic ties between China and the UAE and offers mutually beneficial investment initiatives as well as fresh new growth opportunities to both ADNOC and CNOOC.
He noted that future collaborations under the agreement would underpin ADNOC’s strategic approach towards partners that offer capital, market, or technology access to exploit value from the country’s vast oil and gas resources.
CNOOC chairman Yang Hua commented that the framework agreement was in sync with China’s Belt and Road Initiative and will further extend its energy cooperation with nations along the Belt and Road route, forming a closer community of shared future in the energy segment.
Hua added that the MOU holds great significance for CNOOC in terms of propelling the advancement of its overseas oil and gas services. He further stated that the company will continue deploying across the Belt and Road initiative, reinforcing energy cooperation as well as strengthen the China-Arab alliance.
Apparently, the two companies may involve CNOOC’s engineering divisions, China Oilfield Services Ltd and Offshore Oil Engineering Co Ltd, as oilfield service providers for ADNOC as well as contractors for construction, design, and purchase.
Sources with knowledge on the matter have confirmed that the duo will also cooperatively operate LNG marketing and purchases. According to the sources, ADNOC, in the downstream petrochemicals and oil refining sector, will explore opportunities to invest in CNOOC’s existing refineries.
Source credits: https://in.reuters.com/article/us-china-emirates-adnoc/cnooc-adnoc-sign-mou-on-exploration-oil-refining-lng-trade-state-media-idINKCN1UH0X9