A new chapter for M’sia-UAE ties

VIPs: Sultan Abdullah (fifth from right) and Tengku Zafrul (fifth from left) attending the agreement ­signing ­ceremony. — Bernama

KUALA LUMPUR: The Yang di-Pertuan Agong hopes that the inaugural deal inked between PETRONAS and the Abu Dhabi National Oil Company (Adnoc) will open a new chapter of strategic partnership between Malaysia and the United Arab Emirates (UAE).

The Comptroller of the Royal Household Datuk Seri Ahmad Fadil Shamsuddin said the King had expressed delight over the cooperation between the country’s petroleum company and the UAE.

This collaboration will directly recognise and demonstrate Malaysian companies’ ability to compete globally, said Ahmad Fadil in a statement issued yesterday.

“The cooperation also mirrors the close bilateral relationship between Malaysia and the UAE on many levels, including between the leaders of both countries and relations between the people.

“His Majesty also expressed his hopes for the cooperation to open a new chapter of strategic partnership in various sectors, including the economic sector, for the interest and prosperity of both countries,” said Ahmad Fadil.

The King was in Abu Dhabi on Monday to witness the agreement signed between PETRONAS Abu Dhabi Sdn Bhd, a wholly owned subsidiary of PETRONAS, and Adnoc to explore and appraise Unconventional Onshore Block 1 covering a 2,000 sq km concession in the Al Dhafra region.

The agreement was signed in Abu Dhabi by PETRONAS president and group chief executive officer Datuk Tengku Muhammad Taufik, UAE Industry and Advanced Technology Minister and Adnoc managing director and group chief executive officer Dr Sultan Ahmed Al Jaber.

Also present was International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The King is currently on a four-day special visit to Abu Dhabi at the invitation of UAE President Sheikh Mohamed bin Zayed Al Nahyan, who also witnessed the signing ceremony.

Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim said the signing was a reflection of Malaysia’s international relations and strategic cooperation with various countries.

“I pay tribute to the role of the Yang di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, who is the main driving force behind the success of this effort.

“The signing of this cooperation is a reflection for us to build more precise international relations and forge strategic cooperation with various countries when the world is in recovery after Covid-19 and the uncertainty of the global economy,” he said in a post on Facebook.

Anwar, who is Finance Minister, said he welcomed the historic agreement and had full confidence that local companies and talents would be able to take the lead and explore ideas and opportunities to compete at the global level.

Tengku Zafrul said the landmark deal for the oil and gas sector involves the investment of both countries for a period of 30 years.

On March 10, 2021, PETRONAS signed a Memorandum of Understanding (MOU) with Adnoc and Abu Dhabi Future Energy Company (Masdar), which provide renewable energy solutions, to pursue collaborations across the energy value chain, according to Bernama.

The MOU with Adnoc spans the entire oil and gas value chain, wherein Adnoc welcomes PETRONAS to seek opportunities to collaborate in the exploration, development, and production of Abu Dhabi’s significant conventional and unconventional resources.

The scope extends into potential research and development and applied technology cooperation in enhanced hydrocarbon recovery, carbon capture, utilisation and storage, gas sustainability, specialty chemicals, unconventional resources and hydrogen technologies.

Meanwhile, Masdar will work with PETRONAS to pursue clean energy projects across Asia and the Middle East, covering renewable energy and green hydrogen.

Both parties will explore joint participation in large-scale solar and wind opportunities for utilities and commercial and industrial customers, focusing primarily on Asia.

The collaboration with Masdar will complement PETRONAS’ growing renewables portfolio under its renewable energy arm PETRONAS New Energy, which currently has over 1GW of solar capacity in operation and development in India and Southeast Asia.

For the record, the trade value between the two countries increased 90.4% for the first eight months of this year to RM25.6bil, exceeding the total value of 2021, which stood at RM22.29bil.