China Energy Company Limited (CEFC China) and Abu Dhabi National Oil Company (ADNOC) signed an agreement on 20 February 2017, awarding CEFC it the final 4 per cent interest in Abu Dhabi's onshore oil concession
CEFC contributed a sign-up bonus of AED3.3bn (US$888mn) to enter the concession. The onshore concession is operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).
The agreement, which has a term of 40 years, backdated to 1 January 2015, was signed by H.E.Dr Sultan Ahmed Al Jaber, ADNOC Group Chief Executive Officer, and member of Abu Dhabi’s Supreme Petroleum Council and Ye Jianming, Chairman of the Board of Directors of CEFC China.
H.E. Dr Al Jaber said: “We are pleased to be entering into this strategic partnership with CEFC China. This agreement demonstrates the innovative and strategic approach we are bringing to our business partnerships. CEFC will complement the technical strengths of our existing partners and bring a new dynamic with their financial, commercial and investment experience.
“As ADNOC embarks on implementing its 2030 growth strategy and five-year business plan, we intend to continue to work closely with value-add partners, across the oil and gas value chain, that can contribute world-class technology industry experience and market access.”
CEFC Chairman Ye Jianming said: “We are delighted to expand our relationship with ADNOC and to have secured long-term and stable onshore oil rights and interests that will allow us to engage in the exploration of upstream oil and gas in Abu Dhabi, and further enhance CEFC’s position in leveraging oil reserves and engage in open market trading.
“This agreement enhances our ability to integrate ADNOC’s onshore oil reserves with our storage facilities in China and Southeast Asia. By building an energy corridor, linking China, the Middle East and Europe, we can connect the Chinese market with the upstream resources of Abu Dhabi and the terminals in Europe.”