After settling on 2 partnership deals, the UAE capital together with Saudi Arabia will join forces to develop both of their industries in renewable energy as well as oil & gas.
ADNOC or Abu Dhabi National Oil Company and Saudi Aramco will concentrate on the progress of modern technologies in the field of oil and gas to control efficiently the low oil price situation.
Included in the Adnoc-Aramco contract, both companies will work together to spot technologies that may well enhance the performance and productivity throughout the oil and gas. The deal was signed by Adnoc’s exec. chief and Minister of State Sultan Al Jaber and Aramco President and exec. Chief Amin Nasser.
The collaboration will adapt a culture of knowledge sharing amongst the 2 companies and cooperation will boost long-term economic as well as energy resilience according to the two leaders.
The understanding solidifies a renewed approach when it comes to partnerships that leverage and builds on current industry expertise. Technology innovation is an integral factor on a country’s growth that these countries are very much focused on advanced technology integration.
From the time Mr. Al Jaber took over Adnoc in the first quarter of 2016, he was quick to act on implementing a level of change not usual on a large scale company. The fall of oil prices in 2014 intensely affected the global oil industry that drove the needed reforms specifically in Arab Gulf oil companies.
He believes that using a different approach will help Adnoc to realize bold targets designed for its 5-year business plan as well as 2030 goals.
While the energy industry explores to produce fossil fuels at affordable prices, energy companies are at the same time considering to diversify their business outside the oil market.
Aramco likewise decided to collaborate with Masdar for renewable energy @ carbon capture to use in Saudi Arabia, UAE and other parts of the world.
Contained in National Renewable Energy Program, Saudi’s grand target includes installing 9.5GW of renewable energy by 2030.
There is an enormous growth potential for renewable energy in Saudi Arabia and with Adnoc-Aramco partnership, the delivery of inexpensive and sustainable energy is inevitable according to Masdar’s CEO, Mohamed Al Ramahi.
In the end, an effective drive to a clean energy will well position Aramco for its stock market flotation in 2018 as per Sia Partners Middle East head, Pierre-Louis Brenac. He stated how Aramco has been strongly advocating for renewables, a universal trend in the oil companies. Companies would want to rebalance their portfolio, relating very well to Aramco’s IPO, a diversification between fossil & renewables for a successful IPO.
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