• 2 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 1 day Statoil Changes Name
  • 2 days Tillerson just sacked ... how will market react?
  • 1 day Russian hackers targeted American energy grid
  • 22 hours Is $71 As Good As It Gets For Oil Bulls This Year?
  • 2 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 2 days Proton battery-alternative for lithium?
  • 2 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 22 hours Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 1 day Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days I vote for Exxon
  • 23 hours HAPPY RIG COUNT DAY!!
  • 2 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 2 days Why is gold soooo boring?
  • 2 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 22 hours Spotify to file $1 billion IPO
The Oil Giant That Investors Ignore

The Oil Giant That Investors Ignore

Despite its past troubles, the…

Oil Prices Rise Despite Climbing Rig Count

Oil Prices Rise Despite Climbing Rig Count

The oil rig count rebounded…

China’s CNPC Joins BP, Total In Abu Dhabi Oil Venture

Offshore rig

Abu Dhabi National Oil Company (ADNOC) signed a deal on Sunday to award to the China National Petroleum Corporation (CNPC) an 8-percent stake in Abu Dhabi’s onshore oil concession in exchange for a signing bonus of US$1.77 billion.

By striking the deal with ADNOC, the Chinese company joins oil majors BP and Total, each of whom has a 10-percent stake in the onshore concession operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO). The other foreign shareholders in the venture are Japan’s Inpex Corporation with a 5 percent interest and South Korea’s GS Energy with a 3 percent stake.

ADNOC will continue to explore opportunities to attract partners for the remaining 4-percent interest of the 40-percent stake in the onshore concession it has slated to assign to foreign oil and gas firms, the Abu Dhabi company said in a statement.

The agreement with the Chinese firm is for a 40-year term backdated to January 1, 2015, ADNOC said. The other concession shareholders have also committed to a 40-year deal.

France’s Total joined the concession in January 2015. BP signed up for its stake in December last year. At the time of Total’s joining the concession, ADCO’s expected production for 2015 was around 1.6 million barrels of oil per day, with an objective to increase output to 1.8 million bpd from 2017.

ADCO produces around half of ADNOC’s 3.15-million-bpd output, which is now lower as the UAE is complying with the OPEC supply-cut deal. ADNOC plans to increase its output to 3.5 million barrels of oil per day by 2018, subject to the prevailing market conditions by that time.

As part of a new governmental push to spur investment in Abu Dhabi, oil majors looking to develop the emirate’s oil fields could be getting more profitable terms on their drilling contracts.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News