KUALA LUMPUR (March 10): Petroliam Nasional Bhd (Petronas) in a statement today said it had signed two Memoranda of Understanding (MoU) with United Arab Emirates (UAE)-based Abu Dhabi National Oil Company (ADNOC) and Masdar to pursue collaborations across the energy value chain.

According to the national oil and gas (O&G) company, discussions between the parties began following Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah’s five-day special visit to the UAE in December last year at the invitation of the Crown Prince of the Emirate of Abu Dhabi, Sheikh Mohamed Zayed Al Nahyan.

The two partnerships mark a significant milestone in Malaysia-UAE bilateral relations, Petronas said.

The Petronas-ADNOC MoU was formalised by Petronas president and group chief executive officer (CEO) Tengku Muhammad Taufik Tengku Aziz and UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Dr Sultan Ahmed Al Jaber.

Commenting on the MoU with ADNOC, Tengku Muhammad Taufik said: “Petronas believes the collaboration with ADNOC bears strong testimony to the shared vision of both organisations 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,” he added.

Dr Sultan Ahmed 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-19 economy. We see significant potential in this agreement and look forward to converting it into mutually beneficial partnerships,” he added. 

In a statement today, Petronas noted that the MoU with ADNOC spans the entire O&G value chain where ADNOC welcomes Petronas to seek opportunities to collaborate in the exploration, development and production of Abu Dhabi’s significant conventional and unconventional resources.

“The scope extends into potential research and development (R&D) and applied technology cooperation in enhanced hydrocarbon recovery, carbon capture, utilisation and storage, gas sustainability, specialty chemicals, unconventional resources and hydrogen technologies.

“In the downstream sector, Petronas and ADNOC will explore cooperation in trading, including the supply of crude and feedstock, and the offtake of refined products. Both parties will also assess domestic and international opportunities to maximise value creation down the chain.

“Another potential is in the area of fuel bunkering and in supporting LNG bunkering vessels at ports in the UAE and the region,” it said. 

Separately, the MoU with Masdar, a global leader in renewable energy, will see both companies build greater access to clean energy solutions, Petronas said. 

It added that the MoU was signed by Masdar CEO Mohamed Jameel Al Ramahi and Petronas Power Sdn Bhd CEO and Petronas head of new energy Dr Jason Mariyappan.

Masdar, wholly owned by Mubadala Investment Company, will work with Petronas to pursue clean energy projects across Asia and the Middle East, covering renewable energy and green hydrogen.

According to Petronas, both parties will explore joint participation in large-scale solar and wind opportunities for utilities, commercial and industrial customers, focusing primarily in Asia.

It will also explore opportunities for joint production of green hydrogen. Petronas pointed out that it is gearing towards commercialising low-carbon hydrogen produced from its existing facilities, and is pursuing commercial production of green hydrogen in the near future.

“We are pleased to collaborate with Masdar, which shares the same commitment towards a low-carbon agenda. In line with our statement of purpose, we look forward to powering more businesses with cleaner energy solutions, leveraging our respective geographical and technological strengths to bring more sustainable energy projects to fruition,” Tengku Muhammad Taufik said in a statement. 

Masdar's Mohamed Jameel, meanwhile, highlighted that the company is looking forward to collaborating with Petronas in meeting growing demand for renewable energy solutions across the region. 

“This agreement marks an important step in Masdar’s journey to expand our presence in the Asian market, where we see tremendous potential given the region’s rapid economic growth and potential renewable energy resources,” he added.

In November 2020, the national O&G company announced its commitment towards net zero carbon emissions by 2050 that will help steer the organisation to continue creating value by providing cleaner energies as part of a holistic approach to sustainability.