Abu Dhabi National Oil Company (ADNOC) has signed an agreement with the CEFC China Energy Company (CEFC China) to sell the final 4% interest in its onshore oil concession.
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CEFC China paid a sign-up bonus of AED3.3bn ($888m) to acquire the 4% stake in the concession, which is operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).
ADNOC Group chief executive officer Dr Al Jaber said: “We are pleased to be entering into this strategic partnership with CEFC China. This agreement demonstrates the innovative and strategic approach we are bringing to our business partnerships.
“CEFC will complement the technical strengths of our existing partners and bring a new dynamic with their financial, commercial and investment experience.
“As ADNOC embarks on implementing its 2030 growth strategy and five-year business plan, we intend to continue to work closely with value-add partners across the oil and gas value chain that can contribute world-class technology industry experience and market access.”
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By GlobalDataThe agreement carries a 40-year term and is backdated to 1 January 2015.
CEFC China is one of the largest private companies in the country that focuses on energy and financial services.
CEFC China chairman Ye Jianming said: “We are delighted to expand our relationship with ADNOC and to have secured long-term and stable onshore oil rights and interests that will allow us to engage in the exploration of upstream oil and gas in Abu Dhabi, and further enhance CEFC’s position in leveraging oil reserves and engage in open market trading.
“This agreement enhances our ability to integrate ADNOC’s onshore oil reserves with our storage facilities in China and South East Asia.
“By building an energy corridor, linking China, the Middle East and Europe, we can connect the Chinese market with the upstream resources of Abu Dhabi and the terminals in Europe.”
CEFC China owns controlling interest in KazMunayGas International, the national oil and gas company of Kazakhstan. It also has several energy investments in China, Africa, Europe and the Asia-Pacific Region.
CEFC’s shareholding completes the onshore oil concession stake allocated for foreign oil and gas companies. BP (10%), Total (10%), CNPC (8%), Inpex (5%) and GS Energy (3%) are the other shareholders in the onshore concession.
ADNOC retains a majority 60% share in the ADCO concession.
Image: Ye Jianming, Chairman of China Energy Company and Dr Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Company signs the agreement. Photo: courtesy of Prnewswire / ADNOC / CEFC China.
