CNPC latest to enter Abu Dhabi concessions

China National Petroleum Corporation (CNPC) has struck a deal with ADNOC to buy 10% stakes in the Lower Zakum and Umm Shaif and Nasr fields, the Abu Dhabi NOC announced on Wednesday.

The Chinese NOC will pay USD 600 million for the Lower Zakum purchase and USD 575 million for its entry into the Umm Shaif and Nasr concession, the company statement added. The deal, which comes days after super-majors Total and Eni bought into the concessions, has an effective date of March 9, 2018.

“Energy co-operation is an increasingly important aspect of the UAE’s relations with China, the number one oil importer globally and a major growth market for our products and petrochemicals,” said Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO. “These agreements are new milestones in ADNOC’s thriving partnership with CNPC and also represent an important platform upon which we can explore opportunities further downstream.”

ADNOC will retain a 60% operating interest in both concessions. Excluding CNPC, the remaining partners in Lower Zakum are Inpex (10%), a consortium led by ONGC Videsh (10%), Eni (5%) and Total (5%). In the Umm Shaif and Nasr concession, they are Total (20%) and Eni (10%).