(MENAFN- Emirates News Agency (WAM))
ABU DHABI, 9th December, 2018 (WAM) -- The Abu Dhabi National Oil Company, ADNOC, announced on today, the four percent stake in its onshore concession, previously held by CEFC China Energy Company Limited, CEFC China, has been acquired by North Petroleum International Company Ltd, a subsidiary of China ZhenHua Oil Co. Ltd.
The ownership change has been approved by Abu Dhabi's Supreme Petroleum Council and is in line with the UAE leadership's directives to grant access to Abu Dhabi's oil and gas concessions to partners who offer technology, operational experience, capital or market access. The transfer was endorsed by Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO, and Liu Yijiang, Chairman of China Zhenhua Oil.
Dr. Al Jaber said, "China ZhenHua Oil's acquisition of the four percent stake in the onshore concession underlines the continued pull of the United Arab Emirates as a leading global energy and investment destination, backed by a strong, stable and secure commercial environment. With China ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy."
China ZhenHua Oil is 100 percent indirectly owned by the Assets Supervision and Administration Commission of the State Council, a Chinese-government agency that supervises and manages over a hundred state-owned assets and enterprises in a variety of sectors, including telecommunications, oil and petrochemicals and transport.
Commenting on the announcement, Yijiang said, "For decades, ADNOC Onshore has successfully developed a number of oil fields that produce from Abu Dhabi's giant cretaceous carbonate reservoirs, working in partnership with various international oil companies. China ZhenHua Oil, as a new partner in UAE's upstream sector, is honored to join the operating concession and will contribute its capabilities in technology, management and supply chains, which may maximize the benefits and value for all."
China ZhenHua Oil operates 11 oil and gas upstream projects in six countries, with gross production of close to 10 million metric tons per year. It is also in the fuel storage, transportation and refining business, with a trading desk in Singapore.
China ZhenHua Oil joins BP of the UK (10%), Total of France (10%), China National Petroleum Corporation (CNPC) (8%), Inpex Corporation of Japan (5%), and GS Energy of South Korea (3%) as participants in the onshore concession and shareholders of ADNOC Onshore. ADNOC retains a majority 60 percent share in the ADNOC Onshore operated concession.
WAM/Nour Salman
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