24 February, 2017
Lawyers from the Beijing, Abu Dhabi and London offices of Eversheds advised China National Petroleum Corporation (“CNPC”) on its investment in a major multi-billion barrel concession project in Abu Dhabi, UAE.
On February 19, 2017, CNPC and Abu Dhabi National Oil Company (“ADNOC”) announced the signing of an agreement to award CNPC International Ltd, a wholly-owned subsidiary of CNPC, an 8 percent stake in the US$22 billion Abu Dhabi Company for Onshore Petroleum Operations (“ADCO”) concession (the “Concession”). ADNOC has taken a 60% stake and invited a short-list of leading foreign oil companies to bid for stakes within the remaining 40%. British energy company BP and French energy company TOTAL have each previously signed a deal for a 10 percent stake while Japan’s Inpex and South Korea’s GS have each previously signed a deal for smaller interest with ADNOC.
This new 40-year onshore concession currently covers 15 oilfields (including the Bab, Asab and Bu Hasa) which are collectively estimated to hold resources of between 20 to 30 billion barrels of oil equivalent over its term. This Concession is significant in the context of global oil resources – being currently responsible for more than half of Abu Dhabi’s production of 3.1 million barrels of oil per day. Abu Dhabi represents 6% of the world’s oil reserve. ADCO is the concession operator.
The Eversheds team was led by Ingrid Wenying Zhu-Clark (Managing Partner, Beijing), Tim Armsby (Managing Partner, Abu Dhabi) and Greg Hammond (Partner, London). The full team included partners Geraldine Ahern (Abu Dhabi), Dani Kabbani (Abu Dhabi), Paul Fontes (London), Adrian Toutoungi (London) and Alex Doughty (London), legal director Jubilee Easo (London), senior associate Sara Elmatbouly (Abu Dhabi), Atif Taher (Abu Dhabi) and Marianne Fonteyn (London), and associates Qiao Kang (Beijing), Richard Tan (Beijing) and Victoria Clissold (London).
Ingrid Zhu-Clark commented:
"This is a world-class transaction of CNPC. We are honored and grateful to have the opportunity to represent CNPC in this project. I’m very proud to have worked with such a dedicated team of lawyers on this sophisticated transaction.”
