China National Petroleum Corporation (CNPC) has secured the rights to produce and export oil from Abu Dhabi in the UAE
Under the latest deal, state-run CNPC will help develop the onshore and offshore fields in the capital and own a share in the produced oil, the UAE’s state news agency WAM reported.
“It’s a typical concession, meaning you pay the royalty and then you get the joint venture share of production,” a senior source at CNPC told Reuters.
Under the new joint venture, called the Al Yasat Company for Petroleum Operations, the Chinese energy company will own 40 per cent interest and Abu Dhabi National Oil Company (ADNOC) will hold the remaining 60 per cent controlling stake.
The new concession reportedly comes after ADNOC and CNPC signed a strategic partnership in January 2012 to work on upstream projects in the UAE.
The JV firm will drill for crude and build the processing and transport infrastructure needed to export it, WAM added.
