ADNOC awards China's CNPC 8% of ADCO concession
CNPC joins BP of the UK (10%), Total of France (10%), Inpex Corporation of Japan (5%), and GS Energy of South Korea (3%) as participants in the onshore concession and shareholders of ADCO
The Abu Dhabi National Oil Company (ADNOC) has announced awarding the China National Petroleum Corporation (CNPC) an 8% stake in the emirate’s main onshore oilfield concession, in a deal estimated to be worth $1.77bn.
The onshore concession is operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO), in which ADNOC has a 60% stake.
The agreement was signed by Dr Sultan Ahmed Al Jaber, ADNOC Group chief executive officer and member of the Supreme Petroleum Council of the Emirate of Abu Dhabi, and Wang Yilin, CNPC chairman. The agreement has a term of 40 years, backdated to January 1st, 2015.
CNPC joins BP of the UK (10%), Total of France (10%), Inpex Corporation of Japan (5%), and GS Energy of South Korea (3%) as participants in the onshore concession and shareholders of ADCO.
ADNOC will continue to explore opportunities with potential partners for the remaining 4% stake of the 40% stake, in the onshore concession, earmarked for foreign oil and gas companies.
“Our agreement with CNPC strengthens and deepens the strategic and economic relationship between the United Arab Emirates and China. With our common vision for value add partnerships, we see tremendous opportunity in working together to optimise our energy resources, by achieving maximum economic value, in support of ADNOC’s long-term growth objectives,” Al Jaber was quoted as saying.
“This will be a mutually beneficial partnership that will enable us to maintain strong production levels, as, together, we maximise the returns from what is a very attractive, long-term and sustainable opportunity in our onshore oilfields,” he said.
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers. It is responsible for 52% of China’s crude oil and 71% of its natural gas production. CNPC also has oil and gas assets and interests in 37 countries in Africa, Central Asia-Russia, Americas, Middle East, and Asia-Pacific.
“We are honoured to be chosen by ADNOC to participate in this important onshore concession. This landmark agreement marks an important new phase in CNPC’s strategic relationship with ADNOC and we hope it will lead to further opportunities to participate in the UAE’s energy sector,” CNPC’s Yilin has reportedly said.
“As part of the agreement to enable the optimal, efficient and sustainable development of the concession, CNPC will play an active role in defining and developing technology applications in mature oilfields by planning to establish a tailor-made technology hub in ADCO,” he further said.