(Yicai Global) July 23 -- China's oil exploration giant China National Offshore Oil Corporation and the UAE's Abu Dhabi National Oil Company will together explore upstream and downstream opportunities in the oil and gas industry as well as in the procurement of liquid natural gas.

A strategic agreement was signed in Beijing yesterday in the presence of Chinese President Xi Jinping and visiting Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan, The Paper reported.

The two firms will co-operate in the exploration and production of crude oil and natural gas resources as well as contributing investment and technological advancements in the petrochemical industry's refining and distribution chains. They will share the latest technologies and practical experiences for improved efficiency in the development of ultra-sour gas fields.

The parties will explore opportunities to collaborate in the development of offshore oil and gas fields near the UAE's capital, as well as the possibility of working together in new and existing oil refinery projects in China.

Beijing-based CNOOC and its UAE counterpart will also work together in LNG procurement, share their expertise in the LNG market and assess potential joint investment opportunities.

There is a possibility that CNOOC subsidiary Offshore Oil Engineering may at a later stage become an engineering, procurement and building contractor for ADNOC projects, while separate unit China Oilfield Services may become ADNOC's oil field services provider.

CNOOC has cooperated with over 40 countries and regions on energy and has offshore oil and gas production bases in several continents.