BEIJING, Feb. 21, 2017 /PRNewswire/ -- China Energy Company Limited (CEFC China), which ranks 34th among the Fortune Global 500's energy industry list, announced yesterday that it has gained 40 years of equities in the biggest land oil gas field in Abu Dhabi, UEA.
On February 20th local time, China Energy Company Limited (CEFC) signed an agreement with Abu Dhabi government and Abu Dhabi National Oil Company (ADNOC) to obtain four percent of equities of Abu Dhabi's land leasing contract area. The contract term is 40 years and the total volume is USD1.8 billion. This is the first time for a Chinese company to gain equities in Abu Dhabi's land oil gas area.
With the propelling Belt & Road Initiative, Chinese companies are accelerating their pace of overseas development. The United Arab Emirates is one of the world's most important oil producers and exporters. CEFC China becoming a shareholder of the biggest oil gas field in UAE marks another success in the Belt & Road Initiative.
According to the contract, CEFC China will obtain four percent of the equities, which will yield an annual oil share of 3.2 million tons based on current output, and will be expected to reach over 4 million tons for peak period. In addition, CEFC China has reached an agreement with ADNOC for long term supply of 10 million tons of crude oil each year, thus to ensure China a stable supply of over 13.2 million tons of high quality crude oil each year.
The agreement was signed between Mr. Ye Jianming, Chairman of China Energy Company Limited and Dr. Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Company and member of Abu Dhabi Supreme Petroleum Council.
The contracted oil field is currently the biggest developed field in Abu Dhabi, accounting for half of the country's oil and gas reserve and production. The contracted field will be run by joint operation, with CEFC China taking part in decision-making and management, French Total and British BP providing technical support. The oil field will adopt world-level high standards in production and management.
Mr. Ye Jianming, Chairman of CEFC China attended the signing ceremony and met with Dr. Jaber, CEO of ADNOC. "This is a milestone in bilateral cooperation. Long-term and stable land oil equities investment will bring about deeper cooperation between CEFC China and ADNOC on oil and natural gas exploration and development, oil reserve and open market trade", said Ye Jianming.
Dr. Jaber noted that he is glad to develop strategic partnership with CEFC China, and that ADNOC will maintain close ties with partners who have value-added, world level expertise, financial resources and market opportunities.
Chen Qiutu, CEO of CEFC China told the media that overseas merger & acquisition has always been CEFC China's prioritized goal. CEFC China becoming a shareholder of ADNOC enables the company to obtain long-term stable oil equities, expand its territory in the Middle East's oil gas up-stream industry and establish its influence in the world's up-stream oil gas field.
CEFC China will further develop in the European oil gas terminals, increase investment into up-streams in the Middle East, Central Asia and Africa, promote cooperation between overseas up-streams and China's oil reserve and refining, thus to strengthen its global competitiveness.
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SOURCE CEFC China Energy Company Limited (CEFC China)