Petronas inks MoU with CNOOC to push for energy security, cleaner energy solutions

by LYDIA NATHAN / pic by MUHD AMIN NAHARUL

PETROLIAM Nasional Bhd (Petronas) signed a memorandum of understanding (MoU) with China National Offshore Oil Corp (CNOOC) to collaborate on a project relating to energy security and cleaner energy solutions.

The collaboration is expected to open up opportunities across Petronas’ integrated value chain that would see the two parties working on liquefied natural gas (LNG) upstream exploration and development projects, refining, oilfield and engineering services, specialty chemicals, lubricants and renewable energy.

“In addition to LNG supply, Petronas and CNOOC will also collaborate to grow the use of natural gas as a cleaner marine fuel through LNG bunkering solutions, in support of the International Maritime Organisation regulations on the reduction of greenhouse gas emissions from ships,” Petronas said in a statement.

The MoU will also explore the establishment of a global bunker supply network, leveraging both companies’ experience in LNG bunkering.

Petronas’ relationship with CNOOC began in 2006, following a finalised 25-year LNG supply agreement for over three million tonnes per annum with Shanghai LNG Co Ltd.

CNOOC, which has a 45% stake in Shanghai LNG, operates deepwater Block 4, located in the waters of the Perdido Foldbelt, which is owned by PC Carigali Mexico Operations SA de CV, a subsidiary of Petronas.

Petronas also recently signed another MoU with UAE-based Abu Dhabi National Oil Co (ADNOC) for the exploration, development and production of significant conventional and unconventional resources in Abu Dhabi.

The opportunities will include the optimisation of crude and feedstock supply and the offtake of refined products.

Additionally, Petronas also signed an MoU with Abu Dhabi Future Energy Co, also known as Masdar, to jointly pursue clean energy projects, covering renewable energy and green hydrogen across Asia and the Middle East.

Both groups said they will explore and look into participating in large-scale solar and wind opportunities, as well as green hydrogen production.