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 Aramco boss reveals gas and LNG ambitions amid petchems push

Updated 22 January 2019
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Saudi Aramco boss reveals gas and LNG ambitions amid petchems push

  • Saudi Aramco CEO Amin Nasser: We are in discussions in different countries with a lot of partners. We are reviewing these opportunities to make final decisions in terms of investment
  • Amin Nasser: A lot of it is in partnerships with leading companies around the world and it is either in gas investment, LNG investment or both

London: Saudi Aramco is eyeing gas and LNG acquisitions as it also prepares for the potential purchase of the Kingdom’s biggest chemical maker, CEO Amin Nasser revealed on Tuesday.

He made the disclosure in an interview with Bloomberg TV on the sidelines of the World Economic Forum in Davos.

“We are in discussions in different countries currently with a lot of partners. We are reviewing these opportunities to make final decisions in terms of investment,” Nasser said.

“A lot of it is in partnerships with leading companies around the world and it is either in gas investment, LNG investment or both.”

Aramco has also been in discussions with a credit rating agency ahead of a planned bond sale.

It comes ahead of the potential purchase of Saudi Basic Industries Corporation (SABIC), the Kingdom’s biggest chemical maker and a key part of Aramco’s ambitions to grow its global petrochemicals business.

“We will decide soon how much we would like to take from the bond market. Definitely it is going to be an international bond. We are currently in discussion with regard to how much and where,” Nasser said.

He said that the purchase price for SABIC was still under discussion.

“We are in discussion currently with the Public Investment Fund about acquisition of 70 percent of the share of SABIC. We are in discussion with regard to the price at this stage,” he said.

Earlier this month Saudi Energy Minister Khalid Al-Falih said Aramco would issue bonds in the second quarter of 2019.

Aramco’s planned acquisition of SABIC is expected to involve buying all or nearly all of the 70 percent stake in the chemicals company held by the Public Investment Fund (PIF), the Kingdom’s principal sovereign wealth fund.

Nasser said that there was no plan to acquire the 30 percent of the company that is currently publicly traded in Saudi Arabia.