CNOOC, ADNOC sign MOU on exploration, oil refining, LNG trade

China National Offshore Oil Co (CNOOC) signed a memorandum of understanding (MOU) with Abu Dhabi National Oil Co (ADNOC) on upstream exploration and development, oil refining and liquefied natural gas (LNG) trade, state-backed China News Agency reported.

The MOU was signed on the sideline of a state visit by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.

Under the agreement, companies will share the latest know-how in developing ultra-acidic natural gas fields, the report said, citing a statement from CNOOC Group.

The two companies will consider enlisting CNOOC’s engineering arms, Offshore Oil Engineering Co Ltd (600583.SS) and China Oilfield Services Ltd (601808.SS), as contractors for design, purchase and construction as well as oilfield service providers for ADNOC.

The companies will also explore cooperating in LNG marketing and purchases.

In the downstream oil refining and petrochemicals sector, ADNOC will look into opportunities for investing in CNOOC’s existing refineries, the report said.

Reporting by Muyu Xu and Chen Aizhu; editing by Christian Schmollinger

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