Adnoc in talks with East Asian firms for energy partnerships

23 July 2017

China and Japan are the biggest export markets for UAE crude

Abu Dhabi National Oil Company (Adnoc) is in talks with Chinese and Japanese partners to invest across various segments of its value chain, the company said in a statement.

The move comes after Adnoc announced that it would open up some of its assets to partnerships with international companies.

The oil company said current and potential partners from China and Japan expressed interest in investing across its upstream, midstream and downstream segments.

“Chinese and Japanese companies have been amongst our most important and longest-standing partners and Asia represents tremendous growth opportunities for Adnoc,” said group chief executive Sultan al-Jaber.

“We are therefore seeking partners to co-invest across the different parts of our value chain and who will bring operational expertise and technology, as well as the ability to secure greater access to these fast-growing markets,” he added.

The announcement comes after Adnoc held meetings with the Chinese foreign affairs ministry as well as bilateral talks with Japanese Prime Minister Shinzo Abe.

China and Japan are among the largest buyers of UAE crude as well as petrochemical products. Japan imported the largest share - around 39.6 million barrels last year, while China received 12.2 million barrels from the UAE.

In order to secure markets and financing for energy projects, the UAE oil producer has signed a number of agreements with Chinese and Japanese companies.

Earlier this year, China National Petroleum Corporation won an eight per cent stake in the Abu Dhabi Company for Onshore Petroleum Operations (Adco), which operates the majority of the UAE’s onshore oil and gas fields.

Another firm CEFC China Energy Company was also awarded a four per cent stake in Adco. Both agreements are backdated to January 2015 and will be in place for 40 years.

The UAE exports nearly all of its liquefied natural gas to Japan, through a 25-year agreement with the Tokyo Electric Power Company. The agreement is set to expire in 2019.

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