The UAE’s state-owned Mubadala Petroleum has signed an agreement with China National Petroleum Corporation (CNPC) for the two companies to cooperate in oil and gas exploration and production.

The agreement identifies potential areas of collaboration in the upstream sector outside of the UAE, specifically in the onshore conventional, offshore and liquefied natural gas (LNG) sectors. This includes both new and existing projects, the official Emirates News Agency (Wam) reported.

The framework was signed in Beijing by Mubadala Investment Company CEO Sultan al-Jaber and CNPC Chairman Wang Yilin.

Mubadala Petroleum operates assets in South East Asia including the Nong Yao field in the Gulf of Thailand. Nong Yao, which started production in June, is Mubadala’s third oil field in Thailand.

The company is now the second largest black oil producer in Thailand and several other projects under appraisal and development in the region, Wam reported.

As part of increasing cooperation between China and the UAE oil industry, Abu Dhabi last year set up a new joint venture with CNPC to explore and develop oil fields in the emirate.

The new company, Al-Yasat Company for Petroleum Operations, is 60 per cent owned by Abu Dhabi National Oil Company (ADNOC) and 40 per cent owned by CNPC Hong Kong.