(Yicai Global) March 23 -- PetroChina Co. will spend AED4.3 billion (USD1.2 billion) to take 10-percent stakes in two of Abu Dhabi National Oil Co.'s offshore oil concessions.
The pair penned 40-year agreements to extend their already successful cooperation, 21st Century Business Herald reported, quoting sources close to Adnoc senior management, who added that the Chinese market is gaining importance as oil consumption heads east.
"We will work closely with Adnoc to deploy world class engineering solutions and advanced technology to maximize recovery from the two rigs," said PetroChina Chairman Wang Yilin. The deals strengthen PetroChina's relationship with Adnoc and will help meet China's rising demand for energy while optimizing the firm's asset portfolio and profitability, he added.
The partnership isn't the first connecting the two firms. PetroChina's parent China National Petroleum Corp. and CEFC China Energy Co. won 8-percent and 4-percent stakes in Abu Dhabi's largest onshore concession. Their combined shares amount to more than the total held by Total SA and BP Plc.
ADNOC is offering another 20 percent in each of the oilfields through concessions, and information on competing companies will be disclosed in the near future, the sources said.