Media ININ Economy We Trust
Media IN ABU DHABI, 23rd July, 2019 (WAM)
The strategic ties between the UAE and China in the past five years have led to close cooperation on all fronts, with the UAE becoming China’s main commercial partner in the region, reflecting the vision and the mutual coordination of the leadership of the two friendly countries.
In 2018, ADNOC’s sales of crude oil and refined petroleum products to Chinese companies, in addition to the production quotas of Chinese companies, amounted to US$7.9 billion.
The total value of their current major projects with Chinese companies reached $4.1 billion.
The following projects come within the framework of the partnership between the UAE and China:
The China Petroleum Engineering and Construction Corporation, CPECC, is implementing the Bab Integrated Facilities Expansion project valued at $1.5 billion, with an expected completion by the end of 2020.
The project’s scope of work involves the expansion of integrated processing facilities at the Thamama-A, Thamama-B and Thamama-H production zones located at Habshan, Abu Dhabi.
The project will have a total sustainable oil production rate of 450,000 barrels a day. The digital oil field technology will be introduced to remotely monitor and analyse well performance.
CPECC has also participated with the China Offshore Oil Engineering Company, COOEC, to design the Belbazem oil project, one of the Al Yasat projects, at an estimated cost of $1 billion.
The outcome will be declared in Q4 of 2019. The Abu Dhabi National Oil Company, ADNOC, has awarded contracts worth $1.6 billion for the world’s largest continuous 3D onshore and offshore seismic survey, covering an area up to 53,000 sq km, to BGP Inc, a subsidiary of China National Petroleum Company, CNPC.
ADNOC had strengthened its strategic partnership with Chinese companies by signing an agreement in 2014, stipulating the establishment of the Al Yasat Company for limited petroleum operations. In this joint project, ADNOC holds a 60 percent share and the CNPC holds the remaining 40 percent.
In February 2017, ADNOC signed a concession agreement with the CNPC, under which CNPC acquired an eight percent stake in Abu Dhabi’s offshore oilfields, valued at AED6.5 billion.
The agreement with the CNPC has contributed to the reinforcement of economic and commercial ties between the UAE and China, and is based on the vision of both sides to establish a mutually strategic partnership aimed at achieving additional value, in line with ADNOC’s long term growth objectives.
