China's CNPC inks $1.18B deal for stakes in Abu Dhabi oil

DUBAI, United Arab Emirates – China's state-run national petroleum company has signed a deal worth $1.18 billion for stakes in two oil and natural gas concessions in the United Arab Emirates' capital of Abu Dhabi.

The state-owned Abu Dhabi National Oil Co. signed the 40-year deal with China National Petroleum Corporation for its subsidiary PetroChina to be granted a 10 percent interest in the Umm Shaif and Nasr concession and a 10 percent interest in the Lower Zakum concession.

ADNOC made the announcement on Wednesday.

Umm Shaif and Nasr fields produce 460,000 barrels of oil per day and 500 million standard cubic feet per day of natural gas. Lower Zakum produces some 450,000 barrels of oil per day.

Italian oil giant Eni and French oil giant Total SA also have concessions at both offshore fields.