BEIJING/DUBAI Dec 19 Privately-run CEFC China
Energy is in advanced talks to secure a stake to develop onshore
oilfields in the United Arab Emirates under a 40-year deal, two
industry sources with knowledge of the discussions said on
CEFC is in discussions with state-owned Abu Dhabi National
Oil Co. (ADNOC) to try to acquire 10 percent of the Abu Dhabi
Company for Onshore Petroleum Operations (ADCO), one of the
sources said. ADCO operates onshore oil concessions with total
resources of between 20 billion to 30 billion barrels of oil
The source added that it was not clear how much of a stake
CEFC would ultimately win, but estimated a 10 percent stake
would cost around $2.2 billion.
ADNOC said on Saturday it struck a $2.2 billion deal with BP
for a 10 percent stake in the ADCO concession.
ADNOC is also discussing stake sales with other Asian
companies from China, India and South Korea as well as European
companies like Shell and Statoil, the sources
A spokesman for ADNOC, which holds 60 percent in the
concession, said: "Discussions with a number of international
partners are ongoing for the remaining 12 percent stake in the
ADCO onshore concession." .
A CEFC spokesman said he was unable to comment immediately.
The ADCO concession, including the Bab, Bu Hasa, Shah and
Asab fields, produces 1.6 million barrels per day (bpd) of oil,
with output expected to reach 1.8 million bpd from 2017. The UAE
produced 3.1 million bpd in November, according to a Reuters
Total was the first oil major to renew the
concession, securing a 10 percent stake in January 2015 and
putting its peers under pressure to improve terms after ADNOC
said the French company made the best offer.
Other Asian energy companies were granted smaller stakes.
INPEX Corp of Japan, and GS Energy of South Korea
received 5 percent and 3 percent stakes
The companies bid for the ADCO fields after the old
concession expired in January 2014.
Little-known CEFC has over the past couple of years lined up
preliminary oil production deals in Kazakhstan, Russia and West
Africa. In September it closed its first upstream acquisition in
Chad for $110 million.
(Reporting by Chen Aizhu in Beijing, Rania El Gamal in Dubai;
Additional reporting by Florence Tan in Singapore; Editing by