Page 11 - MEOG Week 11 2021

MEOG PROJECTS & COMPANIES MEOG

ADNOC and Petronas sign

broad collaboration deal

UAE ABU Dhabi National Oil Co. (ADNOC) last Meanwhile, the parties also “agreed to
week signed a broad agreement with Malaysian explore potential partnership opportunities in
counterpart Petronas which will see the pair trading, including optimisation of crude and
explore opportunities throughout the oil and gas feedstock supply and refined products offtake”,
value chain in the first deal signed between them. and they will “look to collaborate to identify
An ADNOC press release said that the technology solutions as well as on hydrogen and
companies would “will jointly explore oppor- research and development (R&D) in areas of
tunities for collaboration in the exploration, mutual interest, including enhanced hydrocar-
development and production of conventional bon recovery and carbon capture utilisation and
and unconventional hydrocarbon resources” in storage (CCUS)”.
the upstream. The inclusion of hydrogen and CCUS is
ADNOC has collaborated for decades with indicative of the strategic importance afforded
Asian IOCs to develop its oil and gas reserves, to decarbonisation by the NOC. Malaysia is
with recent E&P deals signed with Japan’s the third Asian country to agree to explore blue
Cosmo and Thailand’s PTT E&P, but this deal hydrogen-related opportunities with ADNOC
is expansive for its inclusion of the downstream. following deals with Japan and South Korea in
The companies will “jointly assess strategic January and March respectively.
opportunities for domestic and international The company currently produces around
collaboration across the downstream sector”, 300,000 tonnes per year of hydrogen, largely
focusing domestically on opportunities around for use at its downstream facilities. It intends to
fuel oil and LNG bunkering, and on ADNOC’s increase hydrogen output to more than 500,000
Ta’ziz joint venture with ADQ, which seeks to tpy.
drive the development of industrial projects ADNOC noted that the deal would lever-
within the planned Ruwais Derivatives Park and age its “expanded approach to strategic part-
drive economic diversification. nerships”, which is facilitating improved value
Petronas produces around 1.8mn barrels of generation across its portfolio. With recent
oil equivalent per day (boepd) and has an oper- agreements focusing on hydrogen, LNG, ship-
ated refining capacity of 400,000 barrels per day, ping, bunkering, refining as well as E&P, the
while ADNOC is responsible for more than 4mn company is taking a comprehensive approach
bpd of oil production and has a refining capacity to strengthening its already healthy position as
of 922,000 bpd. a fully integrated market leader.™

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