Chinese company has acquired stakes in the UAE largest oil and gas field for $1.8 billion

Almaty. February 22. Silkroadnews – The Chinese company has become the largest shareholder in the oil field of the UAE, the newspaper “People’s Daily” wrote.

“On February 20 the Chinese energy company CEFC China Energy Co. and the government of Abu Dhabi together with the UAE state corporation Abu Dhabi National Oil Co. (ADNOC) signed an agreement to acquire a 4% stake in concession for oil development in the UAE for a period of 40 years. The amount of investments is $1.8 billion”, the publication says.

According to calculations of profits on the project, CEFC’s annual oil output is expected to reach more than 3.2 million tonnes, with stable production of 4 million tonnes for peak periods. CEFC also reached a long-term agreement with ADNOC on the annual supply of 10 million tonnes of crude oil, thus, 13.2 million tonnes of high-quality crude oil will be delivered to the Chinese market each year, which is equivalent to around 10 days’ consumption of crude oil in the mainland China.

The acquirement includes 14 oil fields, this is one of the largest oil and gas blocks developed by Abu Dhabi, which includes about a half of the UAE oil and gas reserves and output.

The Chinese CEFC will participate in decision-making and management of oil production; the project partners are also French Total, British BP and Chinese CNPC.