The Abu Dhabi National Oil Company (ADNOC) signed three framework agreements with South Korean energy companies to explore upstream exploration and production opportunities, potential downstream investments and bunkering opportunities for both crude oil and liquified natural gas (LNG), the company announced Tuesday.
According to the energy major's statement, the agreements were signed with the Korea Gas Corporation (KOGAS), the world's second largest buyer of LNG, which has conducted a feasibility study on LNG bunkering at the U.A.E.'s Fujairah port, and the Korea National Oil Company (KNOC), which has a 30 percent stake in ADNOC's Al Dhafra Petroleum company. KNOC is seeking to increase oil storage in the Republic of Korea by 24 million barrels until 2025.
The third agreement is with GS Energy, an independent Korean energy company that has a 10 percent stake in Al Dhafra Petroleum and 3 percent stake in ADNOC Onshore.
The agreements were signed during an official visit to Seoul by Sheikh Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the U.A.E. Armed Forces, the statement added.
ADNOC Group CEO and Minister of State Sultan Ahmed Al Jaber hailed the "excellent" business relationships between the U.A.E, Abu Dhabi, ADNOC and South Korea, as well as the growing links between ADNOC and Korean companies, calling it "a testament to the depth and importance of those relationships, which the leadership of the U.A.E. is keen to enhance."
He said their discussions explored domestic and international growth opportunities across a range of areas, including oil and LNG bunkering, meeting Korea's growing energy demands and attracting investment to ADNOC's expanding upstream exploration and development operations as well as downstream and gas expansion plans.
"As we successfully deliver our 2030 smart growth strategy, we will continue to work with partners who enable us to unlock and maximize value, contribute technology and help us secure access to the new centers of global demand," he added.
ADNOC is a diversified energy and petrochemicals groups with a daily output of about 3 million barrels of oil and 10.5 billion cubic feet of natural gas.
By Hale Turkes