The Abu Dhabi National Oil Company (ADNOC) has agreed to transfer the rights of Lower Zakum, Umm Shaif, and Nasr offshore from the China National Petroleum Corporation (CNPC) to China National Offshore Oil Corporation’s subsidiary CNOOC Limited (CNOOC), according to a press release. 

The transfer consists of CNOOC acquiring a 40% interest in CNPC’s majority-owned subsidiary PetroChina. This is the first time that a Chinese offshore oil and gas company joins ADNOC’s concessions.   

Ahmed Al Jaber, ADNOC’s CEO, said: “The transfer of part of CNPC’s share in two of ADNOC’s major offshore concessions to CNOOC reflects the long-standing strategic and economic bilateral relations between the UAE and China, and highlights the continued pull of the UAE as a leading global energy and investment destination, backed by a stable and reliable business environment. The transfer also illustrates ADNOC’s strengthened access to international markets and partners and our commitment to generating sustainable returns for the UAE.”

Previously, PetroChina holds a 10% interest in the Lower Zakum concession and a further 10% interest in the Umm Shaif and Nasr concession. As a consequence of the transfer, however, CNOOC will now hold a 4% interest in the Lower Zakum concession and 4% in the Umm Shaif and Nasr concession. Now, PetroChina will retain a 6% stake in each of the concessions.