CNOOC Acquires CNPC's Rights in Two Abu Dhabi Concessions
Abu Dhabi National Oil Company (ADNOC) has approved the transfer of rights in the Lower Zakum and Umm Shaif & Nasr Offshore Concessions from Chinese state-owned oil & gas company China National Petroleum Corp. (CNPC) to a subsidiary of compatriot China National Offshore Oil Corporation Ltd. (CNOOC). The transfer was approved by Abu Dhabi’s Supreme Petroleum Council (SPC).
As part of the transfer, CNOOC’s holding company, CNOOC Hong Kong Holding Limited (CNOOC HK) will acquire a 40% interest in CNPC’s majority-owned subsidiary, PetroChina Investment Overseas (Middle East) Ltd. As a result, CNOOC will hold a 4% interest in the two concessions, with PetroChina retaining a 6% stake. ADNOC will retain a 60% operated ownership interest in both concessions. Other partners in the Lower Zakum Concession include an Indian state-owned consortium led by ONGC Videsh Ltd. (10%), INPEX Corp. (10%), Eni SpA (5%), and TOTAL SA (5%). Eni (10%), TOTAL (20%), and CNPC (6%) are the other partners in the Umm Shaif & Nasr Concession.
The Lower Zakum Concession lies in water depths of approximately 24 m in the Persian Gulf Basin, located ~84 km off the coast of Abu Dhabi. The concession expects to achieve plateau production of 450,000 barrels per day (bbls/d) by 2025. The Umm Shaif & Nasr Concession contains the Umm Shaif and Al-Nasr fields, located ~150 km off the coast of Abu Dhabi.
“CNOOC joins our other international partners in the Lower Zakum and Umm Shaif & Nasr Concessions and brings world-class expertise and technology to help us continue to maximize value from the concessions as we create a more profitable upstream business and deliver our 2030 strategy,” said H.E. Dr. Sultan Ahmed Al Jaber, UAE’s Minister of Industry and Advanced Technology and CEO of the ADNOC Group.
The agreement follows the signing of a comprehensive framework agreement between ADNOC and CNOOC in July last year to explore new opportunities for collaboration in both the upstream and downstream sectors, as well as in liquefied natural gas (LNG).