Malaysian oil company Petronas and China-based oil firm CNOOC, have signed a memorandum of understanding to "pursue mutual growth through closer collaboration."
"The MoU elevates the long-standing relationship between the two parties from primarily liquefied natural gas (LNG) and upstream projects towards a shared ambition in energy security and cleaner energy solutions," Petronas said.
The parties will "intensify" collaboration in LNG, upstream exploration & development projects, refining, oilfield & engineering services, specialty chemicals, lubricants as well as renewable energy.
Petronas said that the agreement with China’s largest offshore oil and gas producer was signed by Petronas Senior Vice President of Corporate Strategy, Mazuin Ismail and CNOOC Vice President, Huo Jian, in a virtual ceremony. The signing was witnessed by Petronas’ Executive Vice President and Chief Executive Officer of Gas + New Energy, Adnan Zainal Abidin and CNOOC Group President, Li Yong.
"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 Organization regulations on the reduction of greenhouse gas emissions from ships. Through the MoU, Petronas and CNOOC will explore the establishment of a global bunkering supply network, leveraging on both companies’ experience in LNG bunkering,"Petronas said.
Petronas shared that in the LNG space, the two companies' relationship dates back to 2006 with the conclusion of a 25-year LNG supply agreement for over 3.0 million tonnes per annum with Shanghai LNG Co., Ltd, which is 45% owned by CNOOC.
On the Upstream side, in 2019, Petronas, through its subsidiary, PC Carigali Mexico Operations S.A. de C.V. obtained a 30% equity share in deepwater Block 4, located in the waters of the Perdido Foldbelt, and operated by CNOOC.