Saudi Arabia concluded two partnership agreements with Abu Dhabi, setting the stage for extensive cooperation in enhancing their respective renewable energy, carbon management and oil industries.
Saudi Aramco and Abu Dhabi National Oil Company (Adnoc) will work in tandem to develop new technologies that enable the companies to better manage an environment plagued by low oil prices. The two will collaborate to improve operational performance and efficiency specifically.
Amin Nasser, president and CEO of Aramco, said that the agreement will foster a “culture of knowledge sharing” between the two entities.
“This agreement reinforces our renewed approach to partnerships, which are aimed at leveraging and building on existing industry expertise. Innovation and technology are critical to our growth strategy, and there is a strong focus on integrating new technology into our upstream and downstream operations, as we work to harness maximum value,” Nasser said.
The companies are making strides in diversifying portfolios for a post-oil dependent environment.
An Ambitious National Renewable Energy Program
Under the National Renewable Energy Program, Saudi Arabia is looking to hit ambitious targets in renewable energy; installing 9.5 gigawatts by 2030 with an interim target of 3.45GW by 2020 is part and parcel of the plan.
The partnership with the UAE will help facilitate this shift through strong knowledge sharing mechanism, spurring both innovation and efficiency.
“The growth potential for renewables in Saudi Arabia is vast, and through our partnership, we look forward to supporting the delivery of affordable and sustainable energy in the kingdom,” said Mohamed Al Ramahi, the chief executive of Masdar.
The push toward renewable energy is a trend among global oil companies. A successful endeavor could position Aramco well for its upcoming initial public offering (IPO) in 2018, a facet of Vision 2030 that will drive considerable transformation and investment in the Kingdom.
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