China’s CNPC buys $1.8 billion stake in Abu Dhabi oil field

China’s CNPC buys $1.8 billion stake in Abu Dhabi oil field

The China National Petroleum Corporation (CNPC) has acquired an 8% share in an Abu Dhabi onshore oil concession, in a deal worth around US$1.8 billion.

The operators of the 40-year concession, Abu Dhabi National Oil Company (ADNOC) announced the deal after an agreement was signed by Sultan Ahmed Al Jaber, ADNOC’s group chief executive officer and CNPC Chairman Wang Yilin.

“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 Al Jaber.

CNPC is the latest multinational oil firm to acquire a share in the Abu Dhabi oil concession, with BP and Total each holding 10% stakes, along with the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).

Japan’s Inpex Corporation also owns 5%, while GS Energy Corporation of South Korea holds 3%.

The deal has been struck as the growth of Asian markets continues to accelerate, with most experts identifying Asia as the region which will experience the fastest growth in energy demand over the next 20 years.

@RGNonline