China firm buys stake in Adnoc onshore concession

Abu Dhabi National Oil Company (Adnoc) on Sunday announced that a subsidiary of China ZhenHua Oil acquired a four per cent stake in its onshore oil concession that was previously held by CEFC China Energy Company. In a statement, the state-owned oil conglomerate said Abu Dhabi's Supreme Petroleum Council has approved the transfer of a 4 per cent stake to North Petroleum International Company. China ZhenHua Oil is 100 per cent indirectly owned by the Assets Supervision and Administration Commission of the State Council, a Chinese government agency that supervises and manages over a hundred state-owned assets and enterprises in a variety of sectors, including oil and petrochemicals and transport, it said. Adnoc said the ownership change 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. Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, and Liu Yijiang, chairman of China Zhenhua Oil, endorsed the transfer. "China ZhenHua Oil's acquisition of the 4 per cent stake in the onshore concession 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," said Dr Al Jaber.