chinas cnpc buys stake in 22 billion abu dhabi oil venture
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

China's CNPC buys stake in $22 billion Abu Dhabi oil venture

Arab Today, arab today

Arab Today, arab today China's CNPC buys stake in $22 billion Abu Dhabi oil venture

Oil Production
Dubai - Arab Today

China National Petroleum Corp. (CNPC) bought a stake in Abu Dhabi’s largest oil concession as the Middle Eastern emirate with 6 per cent of global crude reserves looks increasingly to Asia, its biggest market, for investment to raise output capacity.

Abu Dhabi National Oil Co. awarded CNPC an 8 per cent stake in the onshore venture in return for a $1.8 billion signing bonus, Adnoc said in a statement. State-run CNPC is the venture’s third Asian partner, joining Japanese and South Korean companies alongside BP and Total. BP signed on to the project in December, and Total in January 2015. 

Asia will show the fastest growth in energy demand over the next two decades, according to the International Energy Agency. Abu Dhabi is among the Gulf oil producers including Saudi Arabia and Iraq that are tapping Asia for energy investments. While European and US companies have pumped oil in the Middle East for more than a century, their Asian counterparts are relative newcomers.

"If you’re Abu Dhabi and looking for demand growth, China is the future and its demand is going to continue to grow,” Chris Gunson, a Dubai-based lawyer at Amereller Legal Consultants, said on Sunday. "For the big buyers in Asia, the logical source of that future supply is the Gulf.”

CNPC is joining the Abu Dhabi Company for Onshore Petroleum Operations, or ADCO. BP and Total each hold 10 percent stakes in the venture, while Japan’s Inpex Corp. owns 5 percent and GS Energy Corp. of South Korea holds 3 per cent. Abu Dhabi plans to retain a 60 per cent stake in ADCO and is seeking an investor for the remaining 4 per cent, Adnoc said in the statement.

Export pipeline

Japanese companies are partners in at least four other oil-production ventures in Abu Dhabi, the largest emirate in the United Arab Emirates. Korean and Chinese companies are exploring at smaller concessions in the emirate. CNPC’s engineering arm also helped build an export pipeline in Abu Dhabi.

Elsewhere in the region, CNPC is developing Iraq’s biggest oil field, together with BP. China Petroleum and Chemical Corp. is a partner in a refinery in Saudi Arabia, and Chinese firms are developing crude deposits in Iran.

With the deal announced Sunday, CNPC secures supplies of Abu Dhabi’s main Murban crude grade in addition to what the Chinese company agreed to take in 2011 under long-term contracts. ADCO’s international partners are responsible for funding their shares of investment in the deposits as well as paying signing bonuses.

Abu Dhabi is seeking to boost production capacity to 3.5 million barrels a day by 2018. ADCO pumps about half of Abu Dhabi’s roughly 3 million barrels of daily crude output.

The emirate is expanding production capacity amid a global oil glut that cut prices to an average of about $50 a barrel over the last two years. The Organization of Petroleum Exporting Countries, of which the UAE is the fourth-biggest producer, agreed in November to cut production to trim crude stockpiles and boost prices. Benchmark Brent crude has gained about 11 per cent since the day Opec announced that agreement and was up 0.5 per cent at $56.07 a barrel at 11:18am in Dubai.

The 40-year ADCO concession replaces an earlier agreement under which Western oil majors pumped the emirate’s crude. Exxon Mobil and Royal Dutch Shell took part in the previous venture, also called ADCO, along with BP, Total and Portugal’s Partex Oil & Gas Group. That deal expired in January 2014. Adnoc ran the concession on its own for a year, then backdated the new deal to Jan. 1, 2015.

Source :Times Of Oman

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

chinas cnpc buys stake in 22 billion abu dhabi oil venture chinas cnpc buys stake in 22 billion abu dhabi oil venture

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

chinas cnpc buys stake in 22 billion abu dhabi oil venture chinas cnpc buys stake in 22 billion abu dhabi oil venture

 



GMT 10:10 2017 Thursday ,09 February

3 Important Elements You Have to Consider

GMT 04:03 2017 Monday ,24 April

Bella Hadid ‘dying’ to visit Palestine

GMT 19:25 2016 Wednesday ,25 May

The Brooklyn Desk by Oeuf NYC

GMT 07:49 2018 Friday ,05 January

2 Russian servicemen killed

GMT 07:58 2018 Monday ,01 January

Italy orders N. Korea's envoy to leave

GMT 08:45 2017 Wednesday ,20 December

US military imagines war without GPS

GMT 17:26 2017 Sunday ,17 December

Putin thanks Trump for help in foiling attack plot

GMT 22:19 2017 Monday ,16 October

Cairo-hosted Fatwa conf. new contribution

GMT 02:27 2016 Friday ,10 June

Video hints Japan abetting illegal ivory trade

GMT 07:04 2017 Wednesday ,19 April

1,883 Bahrainis found jobs in March

GMT 14:24 2016 Tuesday ,22 November

Citi and JPMorgan top list of ‘globally banks’

GMT 21:43 2017 Friday ,01 September

People question Nazaruddin`s repatriation expenses

GMT 09:41 2017 Wednesday ,19 April

OIC concerned over violence in Mali

GMT 01:30 2017 Friday ,27 October

May22/Jun21

GMT 05:38 2016 Friday ,30 December

Dubai Airports divert 13 flights due to heavy fog

GMT 11:38 2017 Saturday ,14 January

Mexico names new ambassador to US

GMT 12:03 2017 Wednesday ,22 March

Kuwait to mark World Water Day

GMT 15:00 2017 Wednesday ,27 September

HM King receives invitation from Egyptian President

GMT 02:45 2017 Tuesday ,05 December

President Bashir arrives in Chad

GMT 02:45 2017 Wednesday ,16 August

Turkmen President Visits Pakistan
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday