China ZhenHua Oil unit acquires 4% stake in Adnoc concession
The share was previously held by Shanghai-based CEFC China Energy Company
North Petroleum International Company, a subsidiary of China ZhenHua Oil Company, has acquired a 4% stake in the onshore concession of state-owned Abu Dhabi National Oil Company (Adnoc) Group.
According to statement, the ownership change was 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 Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and Adnoc Group chief executive officer, and Liu Yijiang, chairman of China Zhenhua Oil.
The onshore stake was previously held by Shanghai-based CEFC China Energy Company.
China ZhenHua Oil is fully, indirectly owned by the Assets Supervision and Administration Commission of the State Council, a Chinese-government agency that supervises and manages more than 100 state-owned assets and enterprises in a variety of sectors, including telecommunications, oil and petrochemicals, and transport.
It operates 11 oil and gas upstream projects in six countries, with gross production of close to 10 million metric tons per year. It is also in the fuel storage, transportation and refining businesses, with a trading desk in Singapore.
Al Jaber said China ZhenHua Oil’s 4% onshore concession stake “underlines the continued pull of the [UAE] as a leading global energy and investment destination, backed by a strong, stable, and secure commercial environment”.
“With China ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy," he added.
Also speaking on the news, China Zhenhua Oil’s Yijiang said: "As a new partner in UAE’s upstream sector, [China Zhenhua Oil] is honored to join the operating concession and will contribute its capabilities in technology, management and supply chains, which may maximize the benefits and value for all.”