UAE: Lubricants Cepsa and Cosmo Energy Sign MOU to Seek New Business Opportunities
Under the agreement, both the companies will work towards potential synergies in the production of lubricants and coolants. They will also jointly participate in four oil production fields in Abu Dhabi.
Abu Dhabi/UAE – Cepsa and Cosmo have recently signed a memorandum of understanding (MOU) to study new business opportunities in the lubricants market, both in Spain and Japan as well as internationally.
The agreement covers potential synergies in the production of lubricants and coolants, the exchange of technology and formulations, and the search for possible partnerships in the marketing of these products, to increase their efficiency.
The alliance also reflects both companies' interest in reaching an agreement to manufacture and supply lubricants and coolants on behalf of the other company, under the Cepsa or Cosmo trademark.
Both companies, which form part of the Mubadala portfolio of companies (Cepsa at 100 % and Cosmo Energy Holdings at 20.8 %), started analyzing business opportunities in 2014, when they signed an initial agreement focused on studying partnership possibilities in the exploration and production business.
This alliance laid the foundations to create the subsidiary Cosmo Abu Dhabi Energy Exploration & Production to operate jointly in the United Arab Emirates. Through this partnership (80 % Cosmo Energy Exploration & Production, 20 % Cepsa), both companies operate four oil fields in Abu Dhabi: Hail, Mubarraz, Umm Al-Anbar and Neewat Al-Ghalan, located in shallow waters to the west of the Emirate.