Adnoc gets Chinese firm as new partner for its offshore concessions

147

The Abu Dhabi National Oil Company (ADNOC) has added a Chinese offshore oil and gas company as a new partner in its Lower Zakum and Umm Shaif and Nasr offshore concessions.

The deal involves transferring of rights in the concessions from the China National Petroleum Corporation (CNPC) to China National Offshore Oil Corporation’s subsidiary CNOOC Limited (CNOOC).

The transfer consists of CNOOC acquiring a 40% stake in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) (PetroChina).

PetroChina holds a 10% stake in the each of the two offshore concessions.

With the transfer of rights, CNOOC will hold a 4% in the Lower Zakum concession and a similar stake in the Umm Shaif and Nasr concession. PetroChina will retain a 6% stake in the concessions.

UAE Minister of Industry and Advanced Technology and ADNOC Group CEO Sultan Ahmed Al Jaber said: “CNOOC joins our other international partners in the Lower Zakum and Umm Shaif and Nasr concessions and bring world-class expertise and technology to help us continue to maximize value from the concessions as we create a more profitable upstream business and deliver our 2030 strategy.”

The transaction adds a dedicated Chinese offshore oil and gas company to the offshore concessions of ADNOC for the first time.

The participants in the Lower Zakum concession include an ONGC Videsh-led consortium (10%), INPEX (10%), CNPC (6%), Eni (5%), and Total (5%).

Eni (10%), Total (20%), and CNPC (6%) are the participants in the Umm Shaif and Nasr concession.