UAE: Onshore Operations China Zhenhua Oil Offered 4 % Stake in Adnoc’s Onshore Concession
The stake which was earlier held by CEFC China has now been transferred to China Zhenhua Oil. The move is in line with the gulf country’s aim to grant access to Abu Dhabi’s oil and gas concessions to partners who offer technology, operational experience, and capital.
Abu Dhabi/UAE – The Abu Dhabi National Oil Company (Adnoc) has recently announced that the 4 % stake in its onshore concession, previously held by CEFC China Energy Company (CEFC China), has been acquired by North Petroleum International Company, a subsidiary of China Zhen Hua Oil Co.
The ownership change has been approved by Abu Dhabi’s Supreme Petroleum Council and is in line with the UAE leadership’s directives to grant access to Abu Dhabi’s oil and gas concessions to partners who offer technology, operational experience, capital or market access. The transfer was endorsed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and Liu Yijiang, Chairman of China Zhenhua Oil.
China Zhenhua Oil is 100 % indirectly owned by the Assets Supervision and Administration Commission of the State Council, a Chinese-government agency that supervises and manages over a hundred state-owned assets and enterprises in a variety of sectors, including telecommunications, oil and petrochemicals and transport.
China Zhenhua Oil operates 11 oil and gas upstream projects in six countries, with gross production of close to 10 million metric tonnes per year. It is also in the fuel storage, transportation and refining business, with a trading desk in Singapore.
China Zhenhua Oil joins BP of the UK (10 %), Total of France (10 %), China National Petroleum Corporation (CNPC) (8 %), Inpex Corporation of Japan (5 %), and GS Energy of South Korea (3 %) as participants in the onshore concession and shareholders of Adnoc Onshore. Adnoc retains a majority 60 % share in the Adnoc Onshore operated concession.