The Abu Dhabi National Oil Company (ADNOC) and the China National Offshore Oil Corporation (CNOOC) have signed an agreement to examine opportunities and share knowledge and expertise in upstream and downstream sectors and in liquefied natural gas (LNG).

The deal was signed in the attendance of Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and China’s President Xi Jinping.

The agreement is of meaning given that ADNOC plans to raise its production to five million barrels per day by 2030.

On the other side, China is the world’s largest oil importer, with the UAE being one of its key suppliers.

By way of the agreement, China’s Offshore Oil Engineering Company (COOEC) and China Oilfield assistance will be considered for potential collaboration on offshore and oil and gas field assets in Abu Dhabi.

ADNOC and CNOOC will also explore working together on new integrated refining and petrochemical assets in China in the downstream sector and also cooperate in CNOOC’s existing refining assets.

Demand for petrochemicals and plastics in the downstream sector of China and Asia is set to double by 2040.The two companies will all together explore investment space across the overall LNG value chain.

Sultan Ahmed Al Jaber, UAE’s minister of State and ADNOC group CEO said: “The future collaboration opportunities agreed today with CNOOC reinforce ADNOC’s strategic approach to partners that offer technology, capital or market access to maximise value from Abu Dhabi’s vast oil and gas resources.

“In addition, the collaboration opportunities underpin our 2030 smart growth strategy as well as our focus on key economies and Asian growth markets such as China.”

Yang Hua, chairman of CNOOC said: “CNOOC will continue to implement the Belt and Road Initiative, boost energy cooperation and contribute more value to the China-Arab friendship as well as regional development.”