Adnoc and Aramco will together conduct techno-economic feasibility studies under a new agreement.
ADNOC (Abu Dhabi National Oil Company) has signed a deal with Aramco to examine investments improve in gas and LNG. The company aims to raise its revenues. Besides, ADNOC agreed to store oil in the state of Karnataka with an Indian firm.
Under the terms of the agreement, Adnoc and Aramco will jointly conduct techno-economic feasibility studies and share knowledge and skills in the energy sector. Thus, an extended partnership between Adnoc and Aramco would ensure better energy security and long-term economic prosperity for both nations.
“This agreement will ensure that we are well-positioned to secure greater returns from global LNG demand growth by combining the technological and operational expertise of two of the world’s leading national oil companies,” Dr Sultan Ahmed Al Jaber, UAE’s Minister of State and Adnoc Group CEO, said.
Previously Adnoc stated the company intends to become self-sufficient as well as a net gas exporter in the short term. It announced an investment of Dh486 billion to ramp up oil production and investments in gas in the coming years.
Abu Dhabi’s Supreme Petroleum Council has endorsed Adnoc’s new integrated gas strategy. Its central idea is to sustain LNG production to 2040 and seize incremental LNG and gas-to-chemicals growth opportunities.
Cooperating with India
Furthermore, Adnoc signed a memorandum of understanding (MoU) with the Indian Strategic Petroleum Reserves Ltd (ISPRL). Its goal is to lease half of Padur gas storage facility in Karnata. The facility can store 17 million barrels of oil in its four compartments. Therefore, under the deal, Adnoc could store crude in 2 compartments.
Dr Sultan Ahmed Al Jaber and India’s Oil Minister Dharmendra Pradhan attended the signing ceremony at Adipec on Monday. “India is an important oil market. It is our firm hope that we will be able to convert this framework agreement into a new mutually beneficial partnership that will create opportunities for Adnoc to increase deliveries of high-quality crude oil to India’s expanding energy market and help India meet its growing energy demand and safeguard its energy security,” Al Jaber said.
India is over 82 per cent dependent on imports to meet its crude oil needs, around 8 per cent of is supplied by the UAE.