State-run Abu Dhabi National Oil Company (ADNOC) said on Sunday it had signed an agreement giving China National Petroleum Corporation (CNPC) an eight percent stake in a 40-year onshore oil concession.
“CNPC contributed a sign up bonus of 6.5 billion dirhams ($1.8 billion) to enter the concession,” ADNOC said in a statement.
The onshore concession is operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).
The ADCO concession, including the Bab, Bu Hasa, Shah and Asab fields, has total resources of 20-30 billion barrels of oil equivalent over the term of the concession. The fields produce 1.6 million barrels per day (bpd) and are expected to reach 1.8 million bpd from 2017.