The transaction includes CNOOC acquisition of 40% stake in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) (PetroChina)

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ADNOC adds China’s CNOOC as new partner in two offshore concessions. (Credit: Abu Dhabi National Oil Company.)

UAE-based Abu Dhabi National Oil Company (ADNOC) has announced addition of CNOOC, a subsidiary of China National Offshore Oil Corporation, as its new partner, following the transfer of stakes in its offshore concessions from China National Petroleum Corporation (CNPC).

The transaction involves transferring of its rights in Lower Zakum, and Umm Shaif and Nasr offshore concessions to CNOOC.

Approved by Abu Dhabi’s Supreme Petroleum Council (SPC), the transfer marks the joining of a dedicated Chinese offshore oil and gas company in ADNOC’s concessions for the first time.

The deal includes CNOOC’s acquisition of 40% stake in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) (PetroChina).

PetroChina owns 10% stake in both Lower Zakum concession

ADNOC Group CEO and UAE Industry and Advanced Technology minister 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 maximize value from the concessions as we create a more profitable upstream business and deliver our 2030 strategy.”

PetroChina owns 10% stake in the Lower Zakum concession and a 10% in the Umm Shaif and Nasr concession.

As a result of rights transfer, CNOOC will own a 4% stake in Lower Zakum, Umm Shaif and Nasr concessions, while PetroChina will retain a 6% stake in the assets.

ADNOC said that CNOOC joins an ONGC Videsh-led consortium, INPEX, CNPC, Eni, and Total as participants in the Lower Zakum concession.

It is also a new partner to Eni, Total, and CNPC  as participants in the Umm Shaif and Nasr concession while ADNOC retains 60% ownership in both the concessions.

Recently, ADNOC and ADQ have entered into a joint venture (JV) deal to invest in chemicals projects in the planned Ruwais Derivatives Park.