The Abu Dhabi National Oil Company (ADNOC) has awarded a 4% stake in its onshore concession to China’s North Petroleum International Company, a subsidiary of ZhenHua Oil, ADNOC announced on November 9.
The sale was approved by Abu Dhabi’s Supreme Petroleum Council and affirmed by Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO, and Liu Yijiang, Chairman of ZhenHua Oil.
“China ZhenHua Oil’s acquisition of the 4% stake in the onshore concession underlines the continued pull of the UAE as a leading global energy and investment destination,” Al Jaber said.
The stake was previously held by CEFC China Energy, which purchased it from ADNOC for $900 million in February 2017. However, the company was forced to sell the asset this year after it ran into financial problems.
ZhenHua Oil will now take over CEFC’s 2018 and 2019 contracts for the concession, according to sources familiar with the deal.