The Abu Dhabi National Oil Company (ADNOC) announced a strategic framework agreement with Petroliam Nasional Berhad (PETRONAS) to explore opportunities for collaboration across the full oil and gas value chain.

The first-ever agreement between both companies builds on the strong bilateral ties between the United Arab Emirates (UAE) and Malaysia. The framework agreement was signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Tengku Muhammad Taufik, President and Group CEO of PETRONAS.

Al Jaber said: “We are very pleased to partner with PETRONAS for the first time through this important framework agreement. The agreement is a natural evolution of the strong ties between the UAE and Malaysia and provides an opportunity to deepen the relationship through strategic energy cooperation.

“The agreement offers the potential for exciting opportunities for both companies to unlock and create value across the full oil and gas value chain as we shape our businesses for a post-Covid economy. We see significant potential in this agreement and look forward to converting it into mutually beneficial partnerships.”

The agreement will also enable both companies to jointly assess strategic opportunities for domestic and international collaboration across the downstream sector. Both companies have also agreed to explore potential partnership opportunities in trading including optimization of crude and feedstock supply and refined products offtake.

Tengku Muhammad Taufik said: “PETRONAS believes the collaboration with ADNOC bears strong testimony to the shared vision of both organizations to pursue value creation through progressive and cleaner energy solutions as we navigate the challenges of an accelerating energy transition. We look forward to working together with ADNOC to address growing energy demand in a responsible and sustainable way.”

In addition, they will look to collaborate to identify technology solutions as well as on Hydrogen and research and development (R&D) in areas of mutual interest including enhanced hydrocarbon recovery and Carbon Capture Utilization and Storage.