Adnoc, TotalEnergies Sign Pact To Boost Value Chain Collaboration
Abu Dhabi National Oil Company and French oil major TotalEnergies, have signed a strategic partnership agreement to explore new opportunities for growth across the energy value chain.
A statement yesterday said Adnoc and TotalEnergies will explore opportunities to collaborate in gas growth, carbon capture utilisation and storage, and trading and product supply.
Adnoc identifies $19billion of products with local manufacturing potential Adnoc to deepen collaboration with German companies on clean hydrogen.
“TotalEnergies is a long-standing strategic partner and we are very pleased to build on our successful partnerships through this agreement as the UAE and France strengthen energy co-operation,” said minister of industry and advanced technology and managing director and group chief executive of Adnoc, Dr Sultan Al Jaber.
“The agreement offers the potential to accelerate growth and create greater and more sustainable value for our mutual benefit. We look forward to working with TotalEnergies to unlock the opportunities presented by the agreement across the energy value chain to enable more secure, affordable and sustainable energy for our countries and the world.”
The agreement, which was signed in the presence of Sheikh Mohamed and French President Emmanuel Macron last Tuesday, comes as the UAE and France also agreed on a comprehensive strategic energy partnership.
The partnership focuses on enhancing energy security, affordability and decarbonisation, and progressive climate action before Cop28, which is set to take place in the UAE in 2023, state news agency Wam reported.
Adnoc is expanding operations and aims to boost oil production capacity to 5 million barrels per day by 2030 and achieve gas self-sufficiency for the nation. The UAE is OPEC’s third-largest crude producer.
The company plans to spend $127 billion in capital expenditure to bolster its upstream production capacity and downstream portfolio, as well as its low-carbon fuels business and clean energy ambitions.
The company said it has signed deals with several major international energy companies to support its ambitions. Last March, Adnoc signed a new preliminary agreement and Joint Study Agreements with counterparts in Germany to accelerate and deepen collaboration in clean hydrogen.
Adnoc, clean energy company Masdar and British energy multinational BP also signed a strategic partnership agreement in May to develop clean hydrogen and tap into opportunities offered by the energy transition.
The agreement offers the potential to accelerate growth and create greater and more sustainable value for our mutual benefit, Dr Sultan Al Jaber, minister of industry and advanced technology and managing director and group chief executive of Adnoc said
The two companies currently collaborate across the entire value chain, from offshore and onshore exploration, development and production of oil and gas, to gas processing and liquefaction, product marketing, research and development, and national talent development.
As part of the latest agreement, the companies will focus on development of oil and gas projects in the UAE and supply of diesel from the Emirates to France, TotalEnergies said in the statement.
“I am pleased that TotalEnergies is reaffirming and expanding its strategic collaboration with the UAE through a multi-energy co-operation with Adnoc, our long-standing partner in the UAE,” said Patrick Pouyanne, chairman and chief executive of TotalEnergies.
“Our partnership across the entire energy value chain allows our two companies to join forces to contribute to the energy supply of global markets, while reducing carbon emissions from our operations.”