The Chinese state-run oil and gas company CNPC follows Total, Eni and Inpex into long-term (40-year) offshore concessions with the Emirati company Abu Dhabi National Oil Company (ADNOC): CNPC, through its majority-owned subsidiary Petrochina, has acquired a 10% interest in the Umm Shaif and Nasr concession and a 10% interest in the Lower Zakum concession in the United Arab Emirates (UAE). Petrochina will pay AED2.1bn (US$575m) for the Umm Shaif and Nasr interest and AED2.2bn (US$600m) for the Lower Zakum stake. Both concessions are currently operated by ADNOC offshore.
Earlier in 2018, an Indian consortium led by ONGC Videsh Ltd (OVL) acquired a 10% stake in Lower Zakum for a price of AED2.2bn (US$600m), followed by Eni (acquisition of a 5% stake in Lower Zakum for US$575m and 10% of Umm Shaif and Nasr for US$300m) and Total (acquisition of a 5% interest in the Lower Zakum concession for AED1.1bn (around US$300m) and a 20% stake in the Umm Shaif and Nasr block for AED4.2bn (US$1.15bn)) in March 2018.
Lower Zakum is operated by ADNOC (60%), while the remaining interests are now spread between ONGC Videsh (10%), Inpex (10%), CNPC (10%), Eni (5%) and Total (5%). Umm Shaif and Nasr is operated by ADNOC as well (60%), while the remainder is shared between Total (20%), Eni (10%) and CNPC (10%).
The Lower Zakum field came onstream in 1967 and is located 65 km off the coast of Abu Dhabi and currently produces 400,000 bbl/d of crude oil; it has a target production of 450,000 bbl/d by 2025. The Umm Shaif and Nasr fields are located 135 km from the coast and have a target output of 460,000 bbl/d.
CNPC produces 52% of China’s crude oil and 71% of its natural gas through Petrochina. In the UAE, CNPC has a 40% stake in the Al Yasat concession with ADNOC and was awarded an 8% interest in Abu Dhabi’s onshore concession in February 2017.