Petronas and Chinese National Offshore Oil Corporation (CNOOC) have signed a memorandum of understanding (MoU) for a strategic partnership that will see them expand on existing collaboration.
The agreement will see the companies pursue extending their partnership beyond primarily liquid natural gas (LNG) trading to encompass the entire value chain. The fully-integrated Malaysian oil company and CNOOC, China’s largest offshore oil and gas producer, will target opportunities for exploration and production in key strategic areas.
Target areas include LNG supply and procurement, LNG infrastructure investment, LNG bunkering, renewable energy, specialty chemicals, lubricants, and oilfield and engineering services.
Through the MoU, the companies will explore establishment of a global LNG bunkering supply network, with reliance on the companies’ existing expertise. LNG bunkering refers to the practice of providing LNG fuel to ships for their own consumption. In support of International Maritime Organisation regulations on reducing greenhouse gas emissions from ships, the collaboration will look to increase use of natural gas as a maritime fuel through LNG bunkering.
The recent MoU builds on a long-standing relationship between Petronas and CNOOC from primarily LNG and upstream projects towards a shared ambition in energy security and cleaner energy solution. The partnership began in 2006, with the signing of a 25-year LNG supply agreement for 3m t/y with Shanghai LNG, which is 45% owned by CNOOC.
The MoU was signed in a virtual ceremony by Petronas Senior VP of Corporate Strategy, Mazuin Ismail and CNOOC VP Huo Jian.
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