Abu Dhabi Finalizes Onshore Concession With Chinese Partnership

Abu Dhabi has filled in the blanks at its 1.66mn b/d onshore Adco concession, awarding the final 12% stake to two Chinese firms. China was the UAE’s second largest market for crude oil last year despite purchases falling and the government is keen to bolster relations with this key export market.

More than two years after Total became the first foreign firm to snap up a stake in the rebooted Adco onshore concession, the UAE has finally filled the 40% available to foreign firms.

Chinese state firm CNPC signed up to an 8% stake on 19 February, whilst private sector compatriot CEFC secured the remaining 4% the following day. Despite the separate dates, this should be viewed as a package deal.

CNPC has a smaller stake (8%) than legacy Adco partners Total and BP, which signed up in December. Total and BP each have 10% ( MEES, 23 December 2016 ). The 4% stake purchased by CEFC puts it between Japan’s Inpex (5%) and South Korea’s GS Energy (3%). State firm Adnoc holds the majority 60% (see chart). When combined, the two Chinese firms have the largest foreign representation at Adco.


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