(Yicai Global) Feb. 20 -- Abu Dhabi National Oil Company has agreed to sell 8 percent of an onshore oil concession to state-owned PetroChina Co. [NYSE:PTR] for USD1.8 billion, Bloomberg reported.
The capital of the United Arab Emirates increased oil production last year despite a surplus on the global market, which has seen the price of oil made in the country drop to around USD50 a barrel over the last few years. The Organization of the Petroleum Exporting Countries, the country's fourth largest producer, agreed in November to cut oil production in a bid to reduce the crude oil excess and push up prices.
Abu Dhabi has around six percent of global oil reserves and aims to raise its annual production to 3.5 million barrels by 2018, in spite of current declines in oil output.
French oil giant Total [NYSE:TOT] and British Petroleum [NYSE:BP] each bought 10 percent in Abu Dhabi oil concessions in 2015 and 2016, respectively.