Norwegian state oil company STATOIL is hoping to build upon its existing relationship with ADNOC by focusing on upstream partnerships, Neri Askland, its Vice President Middle East and UAE Country Manager, has said.

He was talking on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference, ADIPEC, which concluded on Thursday.

"We have very good relations with ADNOC that we truly appreciate," Askland said. "We believe we can add additional value though further partnerships. Currently we are focusing on upstream partnerships in Abu Dhabi and we hope to add value by sharing the capabilities that we have built in other places, especially inside subsurface and drilling sectors, where we have established a strong toolbox that we can effectively share through our partnerships."

He noted that STATOIL also has what he described as "excellent partnerships" with Masdar, singling out the Dudgeon Offshore Wind Farm, in the North Sea off the coast of the English county of Norfolk. Installation of the 67 turbines was completed last September. STATOIL is also collaborating with MASDAR in the development of the world’s first commercial scale floating wind-farm which will be sited off the coast of Aberdeenshire in Scotland.

Another element of his company’s collaboration with Abu Dhabi, he noted, was the development with the Petroleum Institute of an Enhanced Oil Recovery laboratory.

Research and Development, R & D, he said, "is our DNA in STATOIL." The Norwegian government, he pointed out, supports R & D with financial incentives. "Firms get a tax credit on research and development and a 78 per cent rebate on exploration costs and can write off much of their investment costs," he said.

Abu Dhabi, Askland added, "still has very strong ambitions for long-term investments. The Emirate represents a kind of oasis amid current conditions. It’s stable and truly represents a significant investment hub."

Asked about the current state of the world oil market, Askland noted: "The market is tightening and it is good news to see prices rise again. If OPEC keeps the strategy going, I think we can see a healthy balance in the oil price in a way that stimulates investments in order to meet future demand. This is because there is always a challenge with prices; if we stop investments due to low prices, certainly there will be spikes in the future if you don’t’ keep the right balance between demand and supply forces."

This year’s ADIPEC, he said, had been "much busier than previous years," with suppliers and contractors seeking business. The decline in the number of people seeking jobs, he added, was another indication that the market is stabilising.