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ADNOC signs offshore concessions with CNPC

chinadaily.com.cn | Updated: 2018-03-23 17:40
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Wang Yilin, chairman of CNPC (left) and Sultan Ahmed Al Jaber, CEO of ADNOC Group. [Photo provided to chinadaily.com.cn]

The China National Petroleum Corporation (CNPC), the world's third largest oil company, has been awarded stakes in two of Abu Dhabi's offshore concession areas following the signing of agreements with the Abu Dhabi National Oil Company (ADNOC) on Wednesday.

Under the terms of the agreements, CNPC, through its majority-owned listed subsidiary PetroChina, has been granted a 10 percent interest in the Umm Shaif and Nasr concession and a 10 percent interest in the Lower Zakum concession.

PetroChina contributed a participation fee of AED 2.1 billion ($575 million) to enter the Umm Shaif and Nasr concession and a fee of AED 2.2 billion ($600 million) to enter the Lower Zakum concession. Both concessions will be operated by ADNOC Offshore, on behalf of all concession partners.

Ali Al Dhaheri, Ambassador of UAE in China. [Photo provided to chinadaily.com.cn]

"These agreements are new milestones in the two countries economic relations, and in Adnoc's thriving partnership with CNPC and also represent an important platform upon which we can explore opportunities further downstream," Dr Ali Al Dhaheri, Ambassador of UAE in China, said.

"China and the UAE have made a number of co-investments in the energy sector in the past years," the ambassador said.

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