For the first time, a dedicated Chinese offshore oil and gas company has joined Abu Dhabi National Oil Co. (ADNOC) offshore concessions, ADNOC reported Monday.
The milestone stems from a new ADNOC agreement to transfer rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions from the China National Petroleum Corp. (CNPC) to China National Offshore Oil Corp. (CNOOC) subsidiary CNOOC Limited. Abu Dhabi’s Supreme Petroleum Council (SPC) approved the move, ADNOC noted in a written statement emailed to Rigzone.
“The transfer of part of CNPC’s share in two of ADNOC’s major offshore concessions to CNOOC reflects the long-standing strategic and economic bilateral relations between the UAE and China and highlights the continued pull of the UAE as a leading global energy and investment destination, backed by a stable and reliable business environment,” commented Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and CEO of ADNOC Group.
ADNOC pointed out that PetroChina holds a 10-percent interest in the Lower Zakum concession as well as 10 percent of the Umm Shaif and Nasr concession. With the agreement, CNOOC will hold four percent interest in Lower Zakum and Umm Shaif/Nasr, with PetroChina holding the remaining six percent, ADNOC stated.
ADNOC explained the transfer entails CNOOC acquiring – through its holding company CNOOC Hong Kong Limited – a 40-percent interest in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) Ltd.
“The transfer also illustrates ADNOC’s strengthened access to international markets and partners and our commitment to generating sustainable returns for the UAE,” continued Al Jaber. “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 maximize value from the concessions as we create a more profitable upstream business and deliver our 2030 strategy.”
In July 2019, ADNOC and CNOOC signed a framework agreement to explore new upstream, downstream and liquefied natural gas collaboration opportunities, ADNOC stated.
“We are very pleased to participate in the Lower Zakum and Umm Shaif and Nasr concessions,” remarked CNOOC Chairman Wang Dongjin. “This further strengthens the strategic relationship with ADNOC and PetroChina. CNOOC will leverage our extensive expertise in the offshore sector and be dedicated to value creation in these concessions for our mutual benefit.”
ADNOC owns a 60-percent interest in the Lower Zakum and Umm Shaif/Nasr concessions. Other Lower Zakum participants include:
Partners joining ADNOC in Umm Shaif and Nasr include:
“CNPC has had successful cooperation with ADNOC, and we believe that the cooperation with CNOOC will bring more value to ADNOC and the partners of the concession,” noted CNPC Chairman Dai Houliang. “We will leverage the strengths of the two Chinese companies, which will help reinforce the development of these two concessions.”
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