ADNOC Signs Deal with CNPC
OREANDA-NEWS. May 13, 2014. The Abu Dhabi National Oil Company (ADNOC) and China National Petroleum Corporation (CNPC) have officially signed a deal that allows the state-run CNPC to produce and export oil from the UAE’s capital.
This deal is one of many that the Chinese company has made since the UAE began to gain footing on a global scale and its economy began to grow.
In the past 30 years, the Chinese have negotiated deals with different oil and gas sources from across the globe to sustain the rapid growth of China and its industries.
The two companies entered a strategic partnership in 2012. However, this new joint venture goes above and beyond. According to WAM, the UAE’s state news agency, the presidentially sanctioned deal allows China’s largest energy company to build fields on shore in Abu Dhabi, in addition to offshore rigs as well.
This agreement has been name the Yasat Company for Petroleum Operations, with ADNOC holding 60 per cent of the shares and CNPC owning the remaining 40 per cent as a sole partner.
WAM continued to state that, the Yasat Company for Petroleum Operations will drill for crude oil and create new processing and transportation capabilities for their findings.
This new joint venture will allow China to share in some of Abu Dhabi’s successes in this industry.
According to research by Bloomberg, which was released in March this year, the capital city pumped close to three million barrels per day, which amounts to ten per cent of the entire amount of oil sold overseas by the Organisation of Petroleum Exporting Countries.
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