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.


LIVE: Future Investment Initiative opens in Saudi Arabia

Updated 10 min 4 sec ago
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LIVE: Future Investment Initiative opens in Saudi Arabia

DUBAI: The three-day Future Investment Initiatives (FII), which starts today, is expected to attract thousands of delegates and see deals worth hundreds of billions of dollars.

The three-day event will likely see investment partnerships from Russia and China being forged, as noted by Ellen Wald, president of the Transversal Consulting think-tank and author of the recent book “Saudi Inc,” with executives still looking to do business at the Riyadh meeting despite some having pulled out.

Executives from the Russian Direct Investment Fund, Russia-China Investment Fund and electronics giant Samsung are listed to speak at the event, joining Saudi speakers including Energy Minister Khalid Al-Falih, Yasir Al-Rumayyan, head of the Public Investment Fund, and sports official Princess Reema bint Bandar.

“Investing in transformation,” “technology as opportunity” and “advancing human potential” are among the FII’s themes. Held at the Ritz-Carlton hotel in Riyadh, the three-day event is billed as a “blueprint for the 22nd century.”

Click for more of our coverage of the Future Investment Initiatives.

For the livestream of opening event, click here.