The Abu Dhabi National Oil Company (ADNOC) has awarded Chinese state-owned oil company China National Petroleum Corporation (CNPC) an 8% interest in Abu Dhabi’s ADCO onshore oil concession. In addition, it has awarded a further 4% stake to CEFC China Energy Co for US$900m.
The oil concession was put in place in January 2015 and is valid until the end of 2054. It is operated by the Abu Dhabi Company for Onshore Petroleum Operations Limited (ADCO, 60%) and similar agreements have been signed with Total (10%), BP (10% stake awarded in December 2016), INPEX (5%) and GS Energy (3%); a 40% share was earmarked for foreign partners.
The ADCO concession will include the fifteen principal onshore oil fields of Abu Dhabi, including the Bab, Bu Hasa, Shah and Asab fields, representing more than half of the Emirate's production. The concession has total resources of between 20-30 Gboe and the overall production in 2016 is expected to average around 1.66 mb/d.