Saudi and Emirati energy giants ink deal to lift gas production

/ Financial News / Thursday, 15 November 2018 12:54

The Saudi and Emirati oil companies, Aramco and Abu Dhabi National Oil Company (ADNOC), signed a partnership agreement to boost gas production.

“This enhanced cooperation between ADNOC and Aramco will ensure more energy security and long-term economic prosperity for our two nations,” said Sultan Al-Jaber, executive director of the Emirati company, in a statement issued after the signing ceremony.

Under the agreement, the two energy giants plan to study together investment opportunities in liquefied natural gas (LNG), but no further details on the partnership were provided.

The agreement came in as the UAE's Supreme Oil Council approved an investment worth nearly 117 billion euros over five years to boost oil and gas production. This investment plan aims to enable Abu Dhabi to become self-sufficient and then gas exporter.

As part of ADNOC’s projects, the Emirati company has also signed with the oil giant Total a concession agreement to launch an unconventional gas exploration program in the Diyab, an area considered to have high potential.

This contract has two phases: a seven-year exploration phase and a 40-year development and operation phase.

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