Chinese CNPC strikes deal with Adnoc on Abu Dhabi oil exploration

China is set to secure oil exploration rights in Abu Dhabi, giving the world’s top oil importer access to one of the world’s most stable oilproducing countries, Abu Dhabi’s The National reported on April 29.

China National Petroleum Company has established a joint venture with Adnoc to develop crude in the emirate, the state news agency Wam said without specifying any concessions that have been awarded. Since 2012, CNPC has been appraising the technical potential of five onshore and two offshore undeveloped blocks covering much of the area west of Abu Dhabi’s legacy fields.

For China, the award marks a breakaway from its role as a cheap go-to for construction projects – such as the Fujairah pipeline that bypasses the Strait of Hormuz – and a producer willing to go where others did not dare: Iraq, Sudan, Afghanistan.

Copyright: The National, 2014