CNPC and ADNOC: a new chapter in energy cooperation for mutual benefit

Under the Belt and Road Initiative, China National Petroleum Corporation (CNPC) and the United Arab Emirates (UAE) have forged a robust partnership in the energy sector, achieving notable successes. The cooperation is anchored in the principle of "mutual benefit and prosperity," fostering cooperation that spans energy development, technical services, and cultural exchange. The partnership has not only solidified the strategic ties between China and the UAE but also injected robust momentum into the transformation of the global energy industry.

Strategic collaboration

The cooperation between CNPC and the Abu Dhabi National Oil Company (ADNOC), dates back to 2007, when its subsidiary, China Petroleum Engineering & Construction Corporation (CPECC), became contractor for the Abu Dhabi Crude Oil Pipeline project. Initially, the UAE served as a transit hub for CNPC, facilitating material supply to the broader Middle East and North Africa region. However, a strategic partnership agreement signed in 2012 significantly expanded their cooperation. Since 2013, CNPC and ADNOC have formalized partnerships across major oilfields like Al Yasat, Onshore, Umm Shaif & Nasr, and Lower Zakum, establishing broad collaboration in oil and gas exploration and development, engineering, equipment supply, and technical services. A renewed strategic agreement in 2024 has ushered in a new phase of this partnership, with CNPC reinforcing its technical prowess and earning the UAE's trust.

Comprehensive partnership

CNPC's partnership with the UAE spans the entire oil and gas value chain, encompassing exploration, development, equipment exports, engineering, and technical services. The corporation's extensive activities contribute significantly to the UAE's economic and industrial growth. Currently, CNPC's operations in the UAE include investments in oil trade, natural gas supply, equipment logistics, and research. Notably in 2018, BGP, a subsidiary of CNPC, entered into a contract with ADNOC for the world's largest onshore and offshore 3D seismic survey, marking a significant milestone in the China-UAE cooperation. CNPC has been instrumental in boosting the UAE's oil production. CPECC, another wholly-owned subsidiary of CNPC, has helped raise the capacity of ADNOC's BAB Onshore Oilfield from 1.4 million barrels to 1.8 million barrels per day.

Clean energy, sustainability

As the UAE leads efforts toward a greener economy, CNPC is actively supporting the country's sustainability goals through joint projects in renewable energy, including solar and LNG initiatives. CNPC's subsidiary CPECC has participated in constructing a Dubai solar power project, which is a key component of the UAE's green energy strategy. This project has become one of the world's largest, aiming to supply clean energy to 320,000 households and reducing 1.6 million tons of carbon emissions annually. The shared vision of both countries for sustainable development has widened the scope of their cooperation, with CNPC aiming to pursue additional renewable energy projects that contribute to the global energy transition.

Cultural, talent exchange

The partnership between CNPC and the UAE goes beyond energy, extending into cultural and talent exchanges. Each year, CNPC selects managers to be trained in the UAE, learning about local practices, while UAE delegations visit China to enhance understanding of corporate culture and management. These exchanges foster trust, promote cultural integration, and reinforce the collaborative foundation between the sides.

A shared vision for future

The cooperation between CNPC and the UAE underscores both nations' technological and managerial expertise, contributing to global energy stability and innovation. Together, China and the UAE have set a standard for international partnerships in the energy sector, advancing sustainable development and supporting the transition toward a low-carbon economy. CNPC remains committed to the principle of "mutual benefit and prosperity" as it strengthens ties with the UAE across energy, technology, and cultural spheres. As the world shifts toward a greener future, CNPC and the UAE are well positioned to open a new chapter in global energy cooperation, elevating the Belt and Road Initiative to new heights.