UAE's ADNOC adds CNOOC of China as new partner in two offshore concessions

Dubai — Abu Dhabi National Oil Co. has added China National Offshore Oil Corp. (CNOOC) as a new partner in two offshore concessions as the UAE's biggest energy producer continues to court Asian oil and gas companies to invest in its assets.

ADNOC will transfer the rights in Lower Zakum, and Umm Shaif and Nasr offshore concessions from China National Petroleum Corp. (CNPC) to CNOOC, the national oil company said on July 27. ADNOC did not disclose the value of the transaction.

After the transfer of rights, CNOOC will hold a 4% interest in Lower Zakum and the same amount in Umm Shaif and Nasr concessions, while CNPC will keep a 6% stake in the assets. CNPC owned 10% of both concessions prior to the transfer.

"This agreement follows the signing of a comprehensive framework agreement between ADNOC and CNOOC in July 2019 to explore new opportunities for collaboration in both the upstream and downstream sectors as well as in liquefied natural gas," ADNOC said.

CNOOC joins an ONGC Videsh-led consortium (10%), INPEX Corp. (10%), CNPC (6%), Eni (5%), and Total (5%) as participants in the Lower Zakum concession. It is also a new partner to Eni (10%), Total (20%), and CNPC (6%) in the Umm Shaif and Nasr concession. ADNOC retains 60% of both concessions.