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 as they look to enhance their collaboration.
The agreement was signed during the state visit of President Sheikh Mohamed to Paris.
Under the terms of the agreement, Adnoc and TotalEnergies will explore opportunities to collaborate in gas growth, carbon capture utilisation and storage, and trading and product supply, a statement said.
“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 Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.
"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, comes as the UAE and France also agreed on a comprehensive strategic energy partnership on Tuesday.
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.
It has signed deals with several major international energy companies to support its ambitions.
In 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.
TotalEnergies, a long-standing international partner of Adnoc, has been active in Abu Dhabi’s oil and gas sector since 1939. In 2021, TotalEnergies’ equity production in the UAE was 280,000 barrels of oil equivalent per day, it 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 a 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.”
Adnoc and TotalEnergies partnership interests
In partnership with Adnoc, TotalEnergies holds the following interests:
- 10 per cent in the Adnoc Onshore oil concession
- 20 per cent in the offshore Umm Shaif and Nasr oil concession and 5 per cent in the offshore oil lower Zakum concession
- 15 per cent in Adnoc Gas Processing
- 5 per cent in Adnoc LNG
- 5 per cent in the National Gas Shipping Company
- 40 per cent in the Ruwais Diyab unconventional gas concession