UAE’s ADNOC awards PetroChina stakes in two offshore concessions

In the Umm Shaif and Nasr concession, PetroChina joins France’s TOTAL and Italy’s Eni which were recently awarded a 20 percent and 10 percent stake respectively. (Courtesy ADNOC)
Updated 21 March 2018
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UAE’s ADNOC awards PetroChina stakes in two offshore concessions

ABU DHABI: PetroChina will take 10 percent stakes in two of Abu Dhabi National Oil Company’s (ADNOC) offshore concessions under a 40-year agreement signed on Wednesday. PetroChina paid a participation fee of 2.1 billion dirhams ($575 million) for the Umm Shaif and Nasr concession and a fee of 2.2 billion dirhams for the Lower Zakum concession, ADNOC said in a statement.
In the Umm Shaif and Nasr concession, PetroChina joins France’s TOTAL and Italy’s Eni which were recently awarded a 20 percent and 10 percent stake respectively.
In the Lower Zakum concession, CNPC joins an Indian consortium led by ONGC Videsh, Japan’s INPEX, TOTAL and Eni.
ADNOC retains a 60 percent majority share in both concessions.
“These agreements strengthen our growing relationship with ADNOC, and will help to meet China’s expanding demand for energy and contribute to asset portfolio optimization and profitability enhancement of PetroChina,” Wang Yilin, who is chairman of both PetroChina and its parent China National Petroleum Corporation (CNPC), said in a statement.
The 40-year agreements, signed by ADNOC and CNPC, are backdated to March 9, 2018, ADNOC said.
In February 2017, CNPC, China’s largest oil and gas producer, was awarded an 8 percent interest in Abu Dhabi’s onshore concession, operated by ADNOC Onshore. It also has a 40 percent stake in the Al-Yasat concession with ADNOC.
“Energy cooperation is an increasingly important aspect of the UAE’s relations with China, the No. 1 oil importer globally and a major growth market for our products and petrochemicals,” ADNOC Group Chief Executive Sultan Ahmed Al-Jaber said in the statement.


Saudi Arabia, Russia and China give EU trade reforms thumbs down at WTO

Updated 16 min 48 sec ago
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Saudi Arabia, Russia and China give EU trade reforms thumbs down at WTO

  • China is suing US and EU at WTO
  • Kingdom warns new rules are concerning

The EU’s new rules against countries dumping cheap goods on its market got a rough ride at a World Trade Organization meeting, where China, Russia and Saudi Arabia led a chorus of disapproval, a trade official said on Thursday.

The EU, which is in a major dispute with China about the fairness of Chinese pricing, introduced rules last December that allow it to take into account “significant distortions” in prices caused by government intervention.

A Chinese trade official told the WTO’s anti-dumping committee that Beijing had deep concerns about the new methodology, saying it would damage the WTO’s anti-dumping system and increase uncertainty for exporters, an official who attended the meeting said.

China argued that the concept of “significant distortion” did not exist under WTO rules, and the EU should base its dumping investigations on domestic prices in countries of origin, such as China.

The EU reformed its rules in the hope they would allow it to keep shielding its markets from cheap Chinese imports while fending off a Chinese legal challenge at the WTO.
China said that when it joined the WTO in 2001, the other member countries agreed that after 15 years they would treat it as a market economy, taking its prices at face value.

But the US and the EU have refused, saying China still subsidises some industries, such as steel and aluminum, which have massive overcapacity and spew vast supplies onto the world market, making it impossible for others to compete.

China is suing both the US and the EU at the WTO to try to force them to change their rules.

Legal experts say the dispute is one of the most important in the 23-year history of the WTO, because it pits the major trading blocs against each other with fundamentally opposing views of how the global trade rules should work.

In the WTO committee meeting, Saudi Arabia said the new rules were very concerning, and it challenged the EU to explain how EU authorities could ensure a fair and objective assessment of “significant distortion.”

Russia said the EU rules violated the WTO rulebook and certain aspects were unclear and created great uncertainty for exporters. Bahrain, Argentina, Kazakhstan and Oman also expressed concerns.

But a US trade official said the discussion showed that appropriate tools were available within the WTO to address distortions affecting international trade.