Abu Dhabi National Oil Company of the United Arab Emirates signed an agreement Sunday with China National Petroleum Corporation, awarding it an eight percent interest in Abu Dhabi's onshore oil concession, both sides said in an e-mailed statement.
The agreement was signed by Sultan Ahmed Al-Jaber, Group Chief Executive Officer 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 6.5 billion dirham (1.77 billion U.S. dollars) 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."
Al-Jaber added "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."
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers.
