Chinese oil and gas company joins ADNOC’s concessions
The Abu Dhabi National Oil Company (ADNOC) announced, today, its agreement to the transfer of rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions from the China National Petroleum Corporation (CNPC) to China National Offshore Oil Corporation’s subsidiary CNOOC Limited (CNOOC).
The transfer has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC) and marks the first time that a dedicated Chinese offshore oil and gas company joins ADNOC’s concessions.
The transfer of concession rights to another key Chinese company reinforces the strong and strategic bilateral ties between the United Arab Emirates (UAE) and the world’s second-largest economy, China.
The transfer comprises of CNOOC acquiring (through its holding company, CNOOC Hong Kong Holding Limited (CNOOC HK)), a 40 percent interest in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) Ltd (PetroChina).
This agreement follows the signing of a comprehensive framework agreement between ADNOC and CNOOC in July 2019 to explore new opportunities for collaboration in both the upstream and downstream sectors as well as in liquified natural gas (LNG).
CNOOC joins an ONGC Videsh-led consortium (10 percent), INPEX Corporation (10 percent), CNPC (6 percent), Eni (5 percent), and Total (5 percent) as participants in the Lower Zakum concession; and Eni (10 percent), Total (20 percent), and CNPC (6 percent) as participants in the Umm Shaif and Nasr concession. ADNOC retains a 60 percent majority ownership interest in both concessions.
Report by: OGP/Segun Cole , Please email us your industry related news for publication info@OilAndGasPress.com
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