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ADNOC Adds New Chinese Partner in Offshore Concessions from CNPC to CNOOC

Gasoil News - Published on Fri, 07 Aug 2020

Image Source: ADNOC CNOOC
The Abu Dhabi National Oil Company announced its agreement to the transfer of rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions from the China National Petroleum Corporation to China National Offshore Oil Corporation’s subsidiary CNOOC Limited. The transfer has been approved by Abu Dhabi’s Supreme Petroleum Council 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 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).

PetroChina holds a 10 percent interest in the Lower Zakum concession and a 10 percent interest in the Umm Shaif and Nasr concession. As a result of the transfer, CNOOC will hold a 4 percent interest in the Lower Zakum concession and a 4 percent interest in the Umm Shaif and Nasr concession, while PetroChina will retain a 6 percent stake in the concessions.

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.

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.

CNOOC is the largest producer of offshore crude oil and natural gas in China and one of the largest independent oil and gas exploration and production companies in the world. As at the end of 2019, the company owned net proved reserves of approximately 5.18 billion barrels of oil equivalent (BOE).

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Posted By : Yogender Pancholi on Fri, 07 Aug 2020
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