Gulf Oil and Gas accountACCOUNT

China's CEFC in Talks for Stake at Abu Dhabi Oil Concessions

Source: Reuters 12/19/2016, Location: Middle East

Share |
Privately-run CEFC China Energy is in advanced talks to secure a stake to develop onshore oilfields in the United Arab Emirates under a 40-year deal, two industry sources with knowledge of the discussions said.

CEFC is in discussions with state-owned Abu Dhabi National Oil Co. (ADNOC) to try to acquire 10 percent of the Abu Dhabi Company for Onshore Petroleum Operations (ADCO), one of the sources said. ADCO operates onshore oil concessions with total resources of between 20 billion to 30 billion barrels of oil equivalent.

The source added that it was not clear how much of a stake CEFC would ultimately win, but estimated a 10 percent stake would cost around $2.2 billion. ADNOC said on Saturday it struck a $2.2 billion deal with BP for a 10 percent stake in the ADCO concession.

ADNOC is also discussing stake sales with other Asian companies from China, India and South Korea as well as European companies like Shell and Statoil, the sources said.

A spokesman for ADNOC, which holds 60 percent in the concession, said: "Discussions with a number of international partners are ongoing for the remaining 12 percent stake in the ADCO onshore concession." . A CEFC spokesman said he was unable to comment immediately.

The ADCO concession, including the Bab, Bu Hasa, Shah and Asab fields, produces 1.6 million barrels per day (bpd) of oil, with output expected to reach 1.8 million bpd from 2017. The UAE produced 3.1 million bpd in November, according to a Reuters survey.

Total was the first oil major to renew the concession, securing a 10 percent stake in January 2015 and putting its peers under pressure to improve terms after ADNOC said the French company made the best offer.

Other Asian energy companies were granted smaller stakes. INPEX Corp of Japan, and GS Energy of South Korea received 5 percent and 3 percent stakes respectively. The companies bid for the ADCO fields after the old concession expired in January 2014.

Little-known CEFC has over the past couple of years lined up preliminary oil production deals in Kazakhstan, Russia and West Africa. In September it closed its first upstream acquisition in Chad for $110 million.

Acquisitions and Divestitures News in United Arab Emirates >>

United Kingdom >>  11/21/2017 - BP has agreed to sell a package of its interests in the Bruce assets in the North Sea to Serica Energy. BP currently operates the assets, which compri...
United Kingdom >>  11/21/2017 - Siccar Point Energy E&P has entered into a farmout agreement with Ineos UK SNS covering two exploration licences (P.1854 and P.1935) in the West of Sh...

Iran >>  11/20/2017 - Irans petroleum minister has stated that French energy giant Total - that has won a deal to develop a key gas project in the country - can quit only i...
Senegal >>  11/20/2017 - Oil exploration company Cairn Energy (CNE.L) is in talks with BP to sell a 30 percent stake in its deepwater SNE field offshore Senegal, which could b...

South Africa >>  11/20/2017 - Africa Energy Corp. (AFE) (Africa Energy) announces the signature of definitive agreements to acquire an effective 4.9% interest in the Exploration Ri...
United Kingdom >>  11/20/2017 - Wood has commenced a multi-million dollar, evergreen contract to act as operating partner of the Scottish Area Gas Evacuation (SAGE) system and Beryl ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United Arab Emirates Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

More News

 

Oil & Gas Companies in United Arab Emirates >>


Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Privacy Policy.