French oil major Total has signed a strategic framework agreement with the Abu Dhabi National Oil Company (ADNOC) to explore joint research, development, and deployment partnership opportunities in the areas of CO2 emission reductions and carbon capture, utilization and storage (CCUS).
The agreement brings together the low carbon technologies from ADNOC and Total and expands on the long-standing partnership and collaboration between the two energy producers across the full value chain, the two companies said in a press release on Thursday.
The agreement was signed by Dr. Sultan Ahmed Al Jaber , UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and Patrick Pouyanné , Chairman & CEO of Total during a meeting in Abu Dhabi.
ADNOC also has a similar agreement with the Italian oil major Eni .
Dr Sultan Ahmed Al Jaber , ADNOC Chief Executive Officer, said: “We are pleased to strengthen our partnership and alliance with Total as we work towards a low carbon future. The agreement builds on our sustainability goal to decrease greenhouse gas (GHG) intensity by 25 per cent by 2030 and reinforces ADNOC’s commitment to responsible oil and gas production as we deliver on our 2030 smart growth strategy”.
Under the terms of the agreement, ADNOC and Total will jointly explore opportunities to reduce CO2 emissions, improve energy efficiency and the use of renewable energy for oil and gas operations.
In the area of CCUS, the companies will further develop joint research into new technologies covering carbon capture, storage solutions and enhanced oil recovery projects based on CO2 usage.
Patrick Pouyanné, Chairman & CEO of Total, said: “This initiative will allow the two companies to join forces in several domains such as the reduction of carbon emissions on industrial sites, improvement of the energy efficiency in operations, and the development of innovative solutions and business models towards the CCUS chain.
“This is a perfect example of Total’s commitment to leverage its global presence and expertise to act towards its 2050 net-zero ambition alongside its long-standing key partners”.
To remind, Total has recently moved to transform itself into a broad energy company as part of its efforts to become a leader in the renewable energy sector and get to net-zero by 2050 .
As a result, Total will increase its investments in renewables and electricity by $1 billion. When it comes to oil projects, Total will focus on low-cost projects and favour value over volume.
In related news, ADNOC, through its LNG unit, this week also signed two liquefied natural gas supply deals with Vitol and Total .
Under its deal with Vitol, ADNOC LNG will supply 1.8 million tons per annum (mtpa) of post-2022 volumes.
ADNOC LNG has also firmed up a two-year supply agreement with Total for 0.75 mtpa of 2021 and 2022 LNG volumes.