Abu Dhabi — Mubasher: Abu Dhabi National Oil Company (ADNOC) has awarded a 4% stake in its onshore concession to North Petroleum International Company (NPIC), a subsidiary of China ZhenHua Oil Co.
The stake was previously held by CEFC China Energy Company Limited (CEFC China), while ADNOC retains a majority 60% share in the concession operated by ADNOC Onshore.
ADNOC said that the ownership change was approved by Abu Dhabi’s Supreme Petroleum Council, and is “in-line with the UAE leadership’s directives to grant access to Abu Dhabi’s oil and gas concessions to partners who offer technology, operational experience, capital, or market access,” according to an official statement.
The transfer was endorsed by Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Liu Yijiang, the chairman of China Zhenhua Oil.
Commenting on the deal, Al Jaber said “with China ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy.”
China’s state-run Zhenhua Oil operates 11 oil and gas upstream projects in six countries, with gross production of around 10 million metric tonnes per year. The Chinese firm also has fuel storage, transportation and refining business with a trading desk in Singapore.
After the acquisition, China ZhenHua Oil joins the UK’s BP (10%), France’s Total (10%), China National Petroleum Corporation (CNPC) (8%), Japan’s Inpex Corporation (5%), and South Korea’s GS Energy (3%) as participants in the onshore concession.
The value of the deal was not revealed.
For his part, China Zhenhua Oil’s chairman Liu Yijiang said that “as a new partner in UAE’s upstream sector, [China Zhenhua Oil] is honored to join the operating concession and will contribute its capabilities in technology, management and supply chains, which may maximise the benefits and value for all.”
