The group chief executive of the UAE’s state-owned Abu Dhabi National Oil Company met Russian energy minister Alexander Novak, as the two countries look to deepen existing Opec+ co-operation and explore investment opportunities.
“Adnoc is open to exploring partnership and co-investment opportunities with Russian energy companies across the full value chain where they make economic sense and drive significant returns for both sides,” Dr Sultan Al Jaber, who is also a UAE minister of state said in a statement following the visit.
“As we respond to the evolving energy landscape, driven by growing demand particularly in Asia, Adnoc is forging ties with new partners from around the world, who share our creative vision and are prepared to put skin in the game through capital, technology and market access,” he added.
The UAE accounts for nearly 4 per cent of global crude production, much of it produced by fields owned and operated by Adnoc alongside foreign partners. The country, which is Opec’s third-largest producer has been backing production cuts of 1.2 million barrels per day in a coalition headed by Saudi Arabia and Russia.
Moscow, which is not a member of Opec was the grouping’s long-standing traditional rival. However, the threat of US production taking over marketshare and the 2016 crash in oil prices which impacted global energy investment has led to the forging of close relationships between Russia, Saudi Arabia as well as the UAE.
Under UAE energy minister Suhail Al Mazrouei’s presidency of Opec in 2018, Abu Dhabi initiated along with members of the alliance the creation of a supergroup to counter US dominance in the energy markets. The United States is currently the world’s largest producer of crude.
Trade ties between the UAE and Russia remain strong with bilateral trade topping Dh11 billion in 2018, a 21 per cent increase over the previous year.