CNPC $1.77 billion acquisition of 8% in Abu Dhabi onshore oil concession

Overview:

• Chinese state-owned oil and gas company, China National Petroleum Corporation (CNPC), acquired 8% in an Abu Dhabi onshore oil concession for $1.77 billion from Abu Dhabi National Oil Company (Adnoc), the emirates' national oil company. 
• The concession, which is held by Abu Dhabi Company for Onshore Petroleum Operations (Adco), has a term of 40 years from January 2015, and is Abu Dhabi's largest onshore block, covering 15 oil fields collectively capable of producing more than three million barrels of crude oil a day. 
• Adnoc has sold a combined 40% share of the concession to the private sector, with BP and Total owning 10% each, and Inpex (5%), GS Energy (3%), and CEFC China Energy (4%) being the other investors. 
• CEFC China Energy acquired its stake in the concession for $888 million the day after CNPC signed its agreement with Adnoc. 

Ben Naylor - Regional editor