Business Overview
The Cosmo Energy Group is engaged in the independent development and production of crude oil in Abu Dhabi, United Arab Emirates (UAE) and Qatar.
In addition to our achievements in oil development spanning half a century, we are promoting safe and stable operations in existing concession areas based on relationships of trust with Middle Eastern oil-producing countries built up through many years of cultural exchange.
Business Strategy
During the period of the transition to decarbonization, we view the strong market demand for a stable energy supply as an opportunity in the business environment. On the other hand, we recognize the following four main risks and are strategically operating our business on the strength of our 50-year relationship of trust with crude oil producing countries.
Identified Risks
- Risks related to crude oil prices and production
- Risk of stranded assets associated with energy transition
- Risk of accidents in oil fields and at production facilities
- Risks related to exploration and development
Opportunities
- Realization of stable energy supply in the period of the transition to decarbonization
- Expectations for global progress in CCS and CCUS technologies and their global popularization
- Potential for collaboration with oilproducing countries in the field of decarbonization
Strengths
- Trust-based relationships with oil producing countries for more than 50 years
- Possession of highly competitive oil fields
- Technologies and know-how cultivated through oil field operations
In March 2022, we concluded a memorandum of understanding with Abu Dhabi National Oil Company (hereafter, “ADNOC”) regarding exploring opportunities for collaboration in the field of decarbonization, including CCS*1 and CCUS*2. We plan to investigate and consider the potential for projects in the Emirate of Abu Dhabi jointly with ADNOC.
In addition, in 2021, Cosmo Energy Exploration & Production acquired the new Offshore Block 4, a new offshore concession in Abu Dhabi to provide a long-term stable supply of oil. The new block is adjacent to an oil field owned by Abu Dhabi Oil Co., Ltd., a Group company, and is located in shallow offshore areas, enabling us to reduce operating cost and ensure a high level of competitiveness. We therefore expect that synergy, including the reduction of development and operating costs, will be created through the joint utilization of production, storage, and shipping facilities.
*1 CCS: Carbon dioxide Capture and Storage
*2 CCUS: Carbon dioxide Capture, Utilization and Storage