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 >>

Ghana >>  2/19/2018 - Aker Energy AS, a 50-50 joint venture between Aker ASA and TRG AS, has entered into an agreement with a subsidiary of Hess Corporation to acqui...
Russia >>  2/19/2018 - PAO NOVATEK (NOVATEK) won the open auction to acquire a 100% stake in Maretiom Investments Limited (owns 100% equity share in Geotransgaz) and 100% of...

United Kingdom >>  2/19/2018 - Baron Oil PLC has entered into an option agreement with Corfe Energy Limited to be assigned part of its rights to farm in to UK North Sea Licence P223...
United Arab Emirates >>  2/18/2018 - On behalf of the Abu Dhabi Government, the Abu Dhabi National Oil Company (ADNOC) signed an agreement with Cepsa, a Spanish integrated oil and gas com...

United Kingdom >>  2/16/2018 - Angus Energy Plc, the conventional oil and gas production and development company, announces that pursuant to the Company’s 22 January RNS it has init...
United States >>  2/15/2018 - Oil Search advises that its acquisition of a 25.5% interest in the Pikka Unit and adjacent exploration acreage and a 37.5% interest in the Horseshoe B...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  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.