Mon 20-02-2017 19:34 PM
ABU DHABI, 20th February, 2017 (WAM)--Abu Dhabi National Oil Company (ADNOC), signed on Monday an agreement with the CEFC China Energy Company Limited (CEFC China), awarding it the final 4% interest in Abu Dhabi’s onshore oil concession. CEFC contributed a sign-up bonus of AED 3.3 billion ($888 million) to enter the concession.
The onshore concession is operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).
The agreement, which has a term of 40 years, backdated to January 1, 2015, was signed by Dr. Sultan Ahmed Al Jaber, Minister of State, ADNOC Group Chief Executive Officer, and member of Abu Dhabi’s Supreme Petroleum Council, and Ye Jianming, Chairman of the Board of Directors of CEFC China.
Dr. Al Jaber said, "We are pleased to be entering into this strategic partnership with CEFC China. This agreement demonstrates the innovative and strategic approach we are bringing to our business partnerships. CEFC will complement the technical strengths of our existing partners and bring a new dynamic with their financial, commercial and investment experience."
"As ADNOC embarks on implementing its 2030 growth strategy and five-year business plan, we intend to continue to work closely with value-add partners, across the oil and gas value chain, that can contribute world-class technology industry experience and market access," he added.
CEFC China is among the 10 largest private companies in China and has a focus on energy and financial services.
CEFC Chairman Ye Jianming said, "We are delighted to expand our relationship with ADNOC and to have secured long-term and stable onshore oil rights and interests that will allow us to engage in the exploration of upstream oil and gas in Abu Dhabi, and further enhance CEFC’s position in leveraging oil reserves and engage in open market trading. This agreement enhances our ability to integrate ADNOC’s onshore oil reserves with our storage facilities in China and Southeast Asia. By building an energy corridor, linking China, the Middle East and Europe, we can connect the Chinese market with the upstream resources of Abu Dhabi and the terminals in Europe."
CEFC China owns a controlling stake in KazMunayGas International N.V. (KMGI), Kazakhstan’s national oil and gas company, and has energy investments in China, Africa, Europe and the Asia-Pacific Region.
It has built large-scale oil storage bases in China and owns trans-shipment terminals and gas stations in France, Spain, Romania and various countries around the Mediterranean and the Black Sea. It also organizes an oil reserve exchange mechanism integrating oil reserves in Europe, the Middle East and China.
CEFC’s shareholding completes the onshore oil concession stake earmarked for foreign oil and gas companies. CEFC 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 ADCO.
ADNOC retains a majority 60% share in the ADCO concession.