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.
Going forward, we will maximize the value of our existing assets while expanding production through strategic growth investments, thereby contributing to the enhancement of the Group’s corporate value.
Business Strategy
During the ongoing transition to a decarbonized society, ensuring a stable energy supply remains essential, with the Oil Exploration and Production Business continuing to play a vital role in this regard. Building on the long-standing relationships of trust with oil-producing countries and our portfolio of highly competitive crude oil assets, we are committed to maintaining safe and stable operations while ensuring profitability. In addition, we are working to balance energy security with environmental responsibility by leveraging decarbonization technologies such as CCS and CCUS and pursuing new forms of collaboration with oil-producing countries. We are also driving operational excellence and business transformation through the adoption of advanced digital technologies, including AI, enhancing operational efficiency, improving productivity, and strengthening our business foundation.
Identified Risks
- Geopolitical risks, including Middle East conflicts
- 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
- Growing importance of a stable energy supply driven by heightened awareness of energy security
- Opportunities to expand into new resource sectors, including natural gas development
- Opportunities for new subsurface resource development by leveraging our drilling and operational expertise
- Potential for collaboration with oilproducing countries in the field of decarbonization
Strengths
- Strong relationships of trust with the Emirate of Abu Dhabi
- Ownership of highly competitive self-operated and self-developed oil fields
- Ownership of promising new concession areas, including Offshore Block 4
In March 2022, we concluded a Memorandum of Understanding (MoU) with Abu Dhabi National Oil Company (ADNOC) to explore opportunities for collaboration in the field of decarbonization, including CCS1 and CCUS2. Together with ADNOC, we are conducting feasibility studies to assess the potential for implementing these initiatives in the Emirate of Abu Dhabi.
In addition, in 2021, Cosmo Energy Exploration & Production acquired Offshore Block 4, a new offshore concession in Abu Dhabi, to help ensure a long-term stable supply of crude oil. The block is adjacent to an oil field operated by Abu Dhabi Oil Co., Ltd., a Group company, and is located in shallow offshore waters, enabling efficient operations with lower operating costs and a high level of competitiveness. In addition, synergies are expected through the shared use of production, storage, and export facilities, including reduced development and operating costs.
*1 CCS: Carbon dioxide Capture and Storage
*2 CCUS: Carbon dioxide Capture, Utilization and Storage