UAE's ADNOC awards stakes in offshore concessions to PetroChina

UAE’s Abu Dhabi National Oil Company (ADNOC) on Wednesday awarded China National Petroleum Corporation's (CNPC) subsidiary PetroChina a 10 percent stake in the Umm Shaif and Nasr concession and a 10 percent stake in the Lower Zakum concession.

The Umm Shaif and Nasr concession, and the Lower Zakum concession, have been created from the former ADMA offshore concession, with the aim of maximising commercial value.

PetroChina contributed a participation fee of AED2.1 billion ($575 million) for the Umm Shaif and Nasr concession, and a fee of AED2.2 billion ($600 million) to enter the Lower Zakum concession, the oil major said in a statement.

CNPC joins Total (which has a 20 percent stake) and Eni (10 percent stake)  as participants in the Umm Shaif and Nasr concession.

In the Lower Zakum concession, it joins an ONGC Videsh-led consortium (which has a 10 percent stake), INPEX Corporation (10 percent stake), Eni (5 percent stake) and Total (5 percent stake).

ADNOC retains 60 percent majority stakes in both concessions.

In February last year, CNPC was awarded an 8 percent interest in Abu Dhabi’s onshore concession, operated by ADNOC Onshore. It also holds a 40 percent stake in the Al Yasat concession, the statement said.