Italian chemical firm Eni is partnering with UAE’s Mubadala Petroleum to look at joint investments in the energy transition field as part of plans to cut carbon footprints. Eni and Mubadala Petroleum, partners in the giant Zohr gas field in Egyptian waters, plan to cooperate in hydrogen and carbon capture, utilisation and storage projects as part of their energy transition push.
The companies have signed a memorandum of understanding (MoU) to cooperate in areas like hydrogen and carbon capture in the Middle East, North Africa, Southeast Asia, Europe and other regions of mutual interest.
Mubadala Petroleum, owned by Abu Dhabi sovereign wealth fund Mubadala Investment Company, said the agreement was part of its “proactive approach to Environmental, Social & Governance (ESG) considerations and its energy transition goals”.
“This includes pursuing a gas-weighted portfolio as a key bridge to renewables,” Mubadala Petroleum CEO Mansoor Mohamed Al Hamed said.
The MoU comes amid a surge in interest in ESG initiatives and deals in the hydrocarbon-rich Gulf amid growing awareness among global investors about ESG risks.
“We will work with a strategic partner like Mubadala Petroleum to find ways of reaching common decarbonisation targets worldwide,” Eni CEO Claudio Descalzi said.
Eni has pledged to be carbon neutral by 2050 as it seeks to keep pace in an industry under mounting investor pressure to curb emissions.
It has built extensive interests in the UAE and has said it is keen to work in the region on developing clean energy businesses.
Mubadala Petroleum, which has a portfolio that is nearly two-thirds natural gas, has cut emissions by 25% over the last three years.