China National Petroleum Corporation (CNCP) has bought two 10% stakes in Abu Dhabi’s Umm Shaif and Lower Zakum offshore fields from the Abu Dhabi National Oil Company (ADNOC), The National reported.
The 40-year agreement is worth $1.18 billion will make China one of the largest foreign energy partners in the UAE, ADNOC stated.
The concessions will be operated by PetroChina, which is majority-owned by the state-backed CNCP.
“CNPC’s involvement in our offshore concession areas will help to maximise the returns from what are very attractive, stable and long-term opportunities,” ADNOC group chief executive, Dr Sultan Al-Jaber stated.
On March 18, ADNOC awarded two stakes – 20% in Umm Shaif and 5% in Lower Zakum – to the French major Total at a combined value of $1.45 billion. ADNOC retains a 60% stake split across the two concessions.
Lower Zakum will have a production rate of 450,000 barrels per day (b/d), while Umm Shaif aims to produce 460,000 b/d on top of 500 million standard cubic feet per day (mscf/d) of natural gas.