France-headquartered energy giant TotalEnergies and the UAE’s Abu Dhabi National Oil Company (ADNOC) have expanded their strategic alliance amid the current geopolitical crisis and global energy security concerns. This deal will enable the two giants to work on exploring opportunities for growth across the energy value chain.
ADNOC revealed on Tuesday that it has signed a strategic partnership agreement with TotalEnergies to deepen the“long-standing” partnership between the two and explore new opportunities in areas including gas growth, carbon capture utilisation and storage (CCUS) and trading and product supply.
The UAE-based giant explained that this agreement was inked in the presence of the UAE President, His Highness Sheikh Mohamed bin Zayed Al Nahyan and the French President, Emmanuel Macron, during the UAE President’s state visit to France. The deal was signed by His Excellency, Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Patrick Pouyanné, Chairman and CEO of TotalEnergies.
Commenting on this deal, H.E. Dr Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, remarked: “TotalEnergies is a longstanding strategic partner and we are very pleased to build on our successful partnerships through this agreement as the UAE and France strengthen energy cooperation. The agreement offers the potential to accelerate growth and create greater and more sustainable value for our mutual benefit.
“We look forward to working with TotalEnergies to unlock the opportunities presented by the agreement across the energy value chain to enable more secure, affordable and sustainable energy for our countries and the world.”
The terms of this deal stipulate that the two giants will jointly evaluate new growth opportunities in the development of oil and gas projects in the UAE to ensure sustainable energy supply to the markets and contribute to global energy security; supply of diesel from the UAE to France; and prospects for a commercial CCUS project in the UAE.
This strategic partnership agreement follows the signing of the UAE-France Comprehensive Strategic Energy Partnership (CSEP) focused on enhancing energy security, energy affordability and decarbonisation, as well as progressive climate action ahead of COP28, which is expected to take place in the UAE in 2023.
In regards to this deal, Patrick Pouyanné, Chairman and CEO of TotalEnergies, stated: “I am pleased that TotalEnergies is reaffirming and expanding its strategic collaboration with the United Arab Emirates through multi-energy cooperation with ADNOC, our long-standing partner in the UAE. Our partnership across the entire energy value chain allows our two companies to join forces to contribute to the energy supply of global markets, while reducing carbon emissions from our operations.”
In a separate statement, TotalEnergies confirmed the deal, adding that it currently collaborates with ADNOC across the full value chain, from offshore and onshore exploration, development and production of oil and gas, to gas processing and liquefaction, product marketing, research and development (R&D), and national talent development.
TotalEnergies’ assets in the UAE
TotalEnergies has been present in the United Arab Emirates since 1939 – for more than 80 years – and in 2021, the firm’s equity production there was 280,000 barrels of oil equivalent per day (boe/d).
In partnership with ADNOC, TotalEnergies holds a 10 per cent interest in the ADNOC onshore oil concession; 20 per cent in the offshore Umm Shaif and Nasr oil concession and 5 per cent in the offshore oil Lower Zakum concession.
In addition, the French player holds a 15 per cent stake in ADNOC Gas Processing (former GASCO); 5 per cent in ADNOC LNG (former ADGAS); 5 per cent in the National Gas Shipping Company (NGSCO); and 40 per cent in the Ruwais Diyab unconventional gas concession.
On the other hand, TotalEnergies, in partnership with Mubadala, holds a 24.5 per cent stake in Dolphin Energy, “the first gas marketing project” between Qatar, UAE, and Oman (2007).
Furthermore, France’s energy giant has been active in the UAE’s power generation since 2001 through the Taweelah desalination plant and power station, which meets around 10 per cent of Abu Dhabi’s water and electricity needs, in partnership with TAQA.
In regards to renewables, with a 20 per cent stake, TotalEnergies is a partner of Masdar and ADPF in UAE’s first Concentrated Solar Power plant, which was inaugurated in 2013 with a capacity of 109 MW.
When it comes to TotalEnergies’ most recent activities elsewhere, it is worth reminding that this energy giant revealed multi-gigawatt offshore wind plans earlier this month. The French player explained that it is eyeing the development of a minimum of 1.3 GW and a maximum of around 5.8 GW of offshore wind through two projects in Denmark.
As disclosed recently, the company is also engaged in discussions with Germany’s Deutsche ReGas regarding the possibility of deploying an FSRU vessel at Lubmin port in northern Germany.
Source: Offshore Energy