HONG KONG -- PetroChina has obtained 10% stakes in two offshore oil concessions in Abu Dhabi under 40-year agreements, paying a total of $1.17 billion.
China has been working to diversify energy sources in light of growing domestic demand while Abu Dhabi sought to secure a stable buyer through the deal.
Abu Dhabi National Oil Co. (ADNOC) granted the interests in the Umm Shaif and Nasr concession for $575 million and the Lower Zakum concession for $600 million, the state-owned Chinese oil and gas company said Wednesday.
"These agreements strengthen our growing relationship with ADNOC, and will help to meet China's expanding demand for energy and contribute to asset portfolio optimization and profitability enhancement," said Wang Yilin, who is chairman of PetroChina and its parent, China National Petroleum Corp., in a news release.
ADNOC divided a large concession into three parts, looking to reshuffle partners as former agreements expired in early March. The shareholder makeup for the third concession, SARB and Umm Lulu, has not been announced.
The state-owned Abu Dhabi company held 60% of the original concession, with the remaining 40% shared among U.K.-based BP, France's Total and Inpex of Japan.
In the newly created Lower Zakum concession, an Indian consortium led by state-owned Oil and Natural Gas Corp. received a 10% stake, with Italy's Eni obtaining 5%. Inpex's share has dropped to 10% from 12% before the rearrangement. Total's share is 5%.
In the Umm Shaif and Nasr concession, Total holds 20% and Eni 10%, while ADNOC keeps 60% stakes in both.
Oil consumption in China increased 6% in 2017 to around 590 million tons, according to local media. Meanwhile, oil imports have risen to a record 400 million tons or so, covering nearly 70% of the demand.