China’s ZhenHua Oil Company, through its subsidiary North Petroleum International Company, acquired a 4% stake at the onshore concession in the Rub’ al Khali Basi, which is owned by the Abu Dhabi National Oil Company’s (ADNOC) and covers 14 oil fields, Egypt Oil & Gas reports.
The oil production of the Middle Eastern block is expected to grow to reach 2 million barrels per day (b/d) over the coming four years.
Several companies are partnering in the concession. ZhenHua would be owning 4%, UK’s BP 10%, France’s Total 10%, China National Petroleum Corporation 8%, Japan’s Inpex Corporation 5%, and South Korea’s GS Energy 3%; all in partnership with ADNOC.
“China ZhenHua Oil’s acquisition underlines the continued pull of the UAE as a leading global energy and investment destination, With China ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy,” said UAE Minister of State and ADNOC Group CEO, Sultan Ahmed al-Jaber.
ZhenHua Oil is a Chinese company operating in 12 oil and gas upstream projects across seven countries, in addition to its activities in fuel transportation, storage, refining and oil trading.