ADNOC adds China’s CNOOC as new partner in two offshore concessions

28 July 2020 (Last Updated July 31st, 2020 14:48)

UAE’s Abu Dhabi National Oil Company (ADNOC) has announced the transfer of ownership rights in two offshore concessions to China National Offshore Oil Corporation’s (CNOOC) subsidiary CNOOC Limited.

ADNOC adds China’s CNOOC as new partner in two offshore concessions
ADNOC transfers rights in major offshore concessions from CNPC to CNOOC. Credit: Abu Dhabi National Oil Company.

UAE’s Abu Dhabi National Oil Company (ADNOC) has announced the transfer of ownership rights in two offshore concessions to China National Offshore Oil Corporation’s (CNOOC) subsidiary CNOOC Limited.

ADNOC will transfer the rights in Lower Zakum, and Umm Shaif and Nasr offshore concessions from China National Petroleum Corporation (CNPC) to CNOOC.

Transfer of rights in these concessions was approved by Abu Dhabi’s Supreme Petroleum Council (SPC).

CNOOC will join a consortium, which includes ONGC Videsh, INPEX, CNPC, Eni, and Total as participants in the two concessions, in which ADNOC holds a 60% stake.

ADNOC Group CEO Sultan Ahmed Al Jaber said: “The transfer also illustrates ADNOC’s strengthened access to international markets and partners and our commitment to generating sustainable returns for the UAE.”

“CNOOC joins our other international partners in the Lower Zakum and Umm Shaif and Nasr concessions and bring world-class expertise and technology to help us continue to maximise value from the concessions as we create a more profitable upstream business and deliver our 2030 strategy.”

CNOOC will acquire a 40% stake of CNPC’s majority-owned subsidiary PetroChina Investment Overseas, which, in turn, holds a 10% interest each in the Lower Zakum and Umm Shaif and Nasr concessions.

Post the transfer of rights to CNOOC, PetroChina will retain a 6% stake in the concessions.

CNOOC chairman Wang Dongjin said: “We are very pleased to participate in the Lower Zakum and Umm Shaif and Nasr concessions. This further strengthens the strategic relationship with ADNOC and PetroChina.”

Last month, ADNOC reached a $20.7bn gas infrastructure deal with a consortium of investors. The group consists of six investors, namely Global Infrastructure Partners (GIP), Brookfield Asset Management, Ontario Teachers’ Pension Plan Board, Singapore’s sovereign wealth fund GIC, NH Investment & Securities, and Snam.