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 Abu Dhabi National Oil Company (ADNOC)
Under the terms of the agreements, CNPC, through its majority-owned listed subsidiary PetroChina, has been granted a 10 per cent interest in the Umm Shaif and Nasr concession and a 10 per cent interest in the Lower Zakum concession.
PetroChina contributed a participation fee of US$575mn to enter the Umm Shaif and Nasr concession and a fee of US$600mn to enter the Lower Zakum concession. Both concessions will be operated by ADNOC Offshore, on behalf of all concession partners.
Dr Sultan Ahmed Al Jaber, CEO of ADNOC Group, said that the expanded collaboration with CNPC further strengthens and deepens the strategic and economic relationship between the UAE and China, the world’s second largest economy.
“Energy cooperation 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. 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,” he added.
CNPC’s involvement in ADNOC’s offshore concession areas is expected to further underline the international energy markets’ confidence in ADNOC’s 2030 growth strategy as we accelerate delivery of a more profitable upstream business and generate strong returns for the UAE.
The Umm Shaif field’s Arab reservoir is characterised by a huge gas cap, one of the largest in the region, with reserves rich in condensates. The gas cap overlays an oil rim which, in combination with Nasr field, has a crude production capacity of 460,000 bpd. ADNOC plans to process 500mn scf of gas per day from Umm Shaif’s gas cap to help meet Abu Dhabi’s growing domestic demand for energy.
CNPC joins Eni (10 per cent) and Total (20 per cent) as participants in the Umm Shaif and Nasr concession and an ONGC Videsh led consortium (10 per cent), INPEX Corporation (10 per cent), Eni (five per cent) and Total (five per cent) as participants in the Lower Zakum concession. ADNOC retains 60 per cent majority shares in both concessions.
