Abu Dhabi Company for Onshore Petroleum Operations (Photo : Getty Images)
China's largest oil and gas company, the China National Petroleum Corporation (CNPC) has signed a $1.77 billion deal with the Abu Dhabi National Oil Company (ADNOC), getting an 8 percent share in the onshore oil concession in the United Arab Emirates.
ADNOC said in a statement on Sunday, Feb. 19, that the deal would allow the Chinese oil company to have a stake in the Abu Dhabi Company for Onshore Petroleum Operations which has 40-year concession in the country's petroleum operation, according to Channel News Asia.
"This will be a mutually beneficial partnership that will enable us to maintain strong production levels," Sultan Ahmed Al Jaber, ADNOC chief executive, was quoted as saying.
Meanwhile, Wang Yilin, CNPC chairman, expressed hope that the deal would "lead to further opportunities to participate in the UAE's energy sector."
More than half of China's crude oil products and 71 percent of its natural gas output were produced by CNPC, the largest oil and gas producer and supplier in the country, the report said.
The deal is an addition to the Chinese oil company's oil and gas projects in 37 countries in Central Asia, Russia, Africa, the Americas, the Middle East and Asia-Pacific region.
China's second largest trading partner in the Middle East is the United Arab Emirates (UAE) with commerce valued at $60 billion in 2016.
China's stake is now in the same oil concession with British oil giant BP, which secured its 10 percent share last year, while France's oil firm Total also has 10 percent of the total 40 percent allocated for foreign companies.
Japan's Inpex Corp has 5 percent in the concession while GS Energy of South Korea has 3 percent, the report said.
According to the statement, the Emirati company is still in search of a partner for the remainder of the concession.
UAE produces 3.09 million barrels a day, which is equivalent to 3.32 percent to the total daily oil production in the world, according to Bloomberg.
Among the top 10 oil producers in the world, Russia has surpassed Saudi Arabia in the top place with an average of 10.49 million barrels a day.
The U.S. is the third largest oil producer while Iraq and China followed at 4.5 million and 3.98 million barrels a day, respectively, Bloomberg data show.
