Following approval by Abu Dhabi's Supreme Petroleum Council, ZhenHua Oil Ltd subsidiary North Petroleum International Company Ltd has acquired CEFC China Energy Company Limited's (CEFC) 4% stake in the onshore ADCO Concession and its operating company ADNOC Onshore. While the value of the deal has not been revealed, CEFC reportedly payed a sign-up bonus of US$ 900 million when it was awarded its interest in the acreage in early 2017. ZhenHua Oil joins the Abu Dhabi National Oil Company (ADNOC, 60%), Total (10%), BP (10%), CNPC (8%) INPEX (5%) and GS Energy (3%).<P />ADNOC stated that the ownership change is in line with the United Arab Emirates (UAE) leadership's directives to grant access to Abu Dhabi's oil and gas concessions to partners who offer technology, operational experience, capital or market access. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO, said "ZhenHua Oil's acquisition of the 4% stake in the onshore concession underlines the continued pull of the United Arab Emirates as a leading global energy and investment destination, backed by a strong, stable and secure commercial environment. With ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy." <P />The ADCO concession has a total resource of 20-30 Bboe, and includes 15 principal onshore oil fields, 11 of which are currently in production. Production from the concession was expected to average around 1.8 MMbo/d by the end of 2018, which represents more than half of the UAE's total oil production. Planned development work is aimed at increasing production to 2 MMbo/d in 2020.
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