China National Petroleum Corporation (CNPC) and the Jebel Ali Free Zone of Dubai signed on Tuesday a deal under which the Chinese state-held oil giant will set up a Middle East regional headquarters in Jafza.
CNPC's regional base will feature a multistory office and a warehouse facility for storing, maintaining, and repairing oil and gas equipment, the Jebel Ali Free Zone said in a press release.
"CNPC's headquarters in the UAE reinforces its presence as a key player in the region's energy sector. Jafza is working in line with the directives of our leadership to provide an attractive business environment for foreign companies and to diversify Dubai's economy," said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World and Chairman of Ports, Customs and Free Zone Corporation.
The Dubai regional headquarters will support CNPC's plans to expand in the UAE and the Middle East after the Chinese group bought 8 percent in Abu Dhabi Company for Onshore Petroleum Operations (ADCO), said Zhu Junfeng, CEO of CNPC Middle East.
In February, Abu Dhabi National Oil Company (ADNOC) signed a deal to award to CNPC an 8-percent stake in Abu Dhabi's onshore oil concession in exchange for a signing bonus of $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 ADCO.
Apart from the UAE, CNPC has interests in oil production and oilfield services in Iraq and Iran. CNPC is partnering with Total and Petronas in the development of the Halfaya oil field, and with BP at the Rumaila oil field in Iraq. CNPC is also a partner of France's Total in an initial agreement to develop phase 11 of the South Pars gas field in Iran, to name a few CNPC ventures in the region.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More