Dubai: Abu Dhabi National Oil Company (Adnoc) said on Sunday it has signed an agreement to give China National Petroleum Corporation (CNPC) an 8 per cent stake in Abu Dhabi’s onshore oil concession.
CNPC contributed a sign up bonus of Dh6.5 billion to enter the concession, which is operated by the Abu Dhabi Company for Onshore Petroleum Operations (Adco). The agreement has a term of 40 years, backdated to January 1, 2015.
“This will be a mutually beneficial partnership that will enable us to maintain strong production levels as, together, we maximise the returns from what is a very attractive, long-term, and sustainable opportunity in our onshore oilfields,” said Dr Sultan Al Jaber, Adnoc Group chief executive officer and member of the Supreme Petroleum Council of Abu Dhabi.
Other participants in the onshore concession include UK’s BP (which has a 10 per cent stake), France’s Total (with a 10 per cent stake), Japan’s Inpex Corporation’s (5 per cent stake), and South Korea’s GS Energy (3 per cent).
In the statement, Adnoc said it will “continue to explore opportunities with potential partners for the remaining 4 per cent stake of the 40 per cent stake in the onshore concession, earmarked for foreign oil and gas companies”.
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