CNPC and Mubadala sign co-operation agreement

UAE operator Mubadala Petroleum and state-run China National Petroleum Corporation, better known as CNPC, have signed a co-operation agreement on Monday that foresees collaboration in the upstream sector, as well as onshore conventional, offshore and LNG projects.

CNPC purchased 40% of Al Yasat Company for Petroleum Operations, which operates in the UAE, in 2014, following a 2012 agreement of partnership to develop upstream projects.

Mubadala Petroleum CEO Musabbeh Al Kaabi said at the signing ceremony in Beijing that the agreement reflected growing dialogue between the two companies with expanding international interests.

Abu Dhabi has 98 billion barrels of proven oil reserves and produced 3.7 million barrels of oil per day in 2014, according to the BP 2015 Statistical Review.

China, on the other hand, is energy-hungry, with 1.8 billion barrels of crude imported in the first eight months of 2015, an 8.8% increase from the previous year. The country’s year-on-year oil demand was up 10.2% in August 2015 to 11.2 million barrels of oil per day.

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