The China National Petroleum Corporation secured an 8 % share in an onshore oil concession in Abu Dhabi in a deal worth $1.77 billion, the Emirati company announced on February 19, 2017.
The agreement was signed by Sultan Ahmed Al-Jaber, Group CEO of the government-controlled ADNOC and member of the Supreme Petroleum Council of the Emirate of Abu Dhabi, and Wang Yilin, CNPC Chairman.
CNPC contributed a sign-up bonus of $1.77 billion to enter the concession. The onshore concession is operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).
Al-Jaber said «Our agreement with CNPC strengthens and deepens the strategic and economic relationship between the UAE and China. We see tremendous opportunity in working together to optimise our energy resources, by achieving maximum economic value, in support of ADNOC's long-term growth objectives».
Wang Yilin said the agreement «marks an important new phase in CNPC's strategic relationship with ADNOC and we hope it will lead to further opportunities to participate in the UAE's energy sector».
The United Arab Emirates is China's 2nd-largest trading partner in the Middle East, with commerce worth $60 billion in 2016.
CNPC is China's largest oil and gas producer and supplier, responsible for more than half of China's crude oil output and 71 % of its natural gas production
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