Monday, May 25, 2015

China raising its stake in UAE oil fields

 Special to -  

The state oil company of China has been awarded a major onshore oil contract by United Arab Emirates.  China Petroleum Engineering and Construction Corporation (CPECC), part of state-run PetroChina, won the $330 million contract for development of Abu Dhabi’s Mender oilfield, according to Beijing’s state-owned Xinhua news agency.
Officials said China, which in 2013 doubled its oil imports from UAE, may be eyeing a stake in Abu Dhabi’s Company for Onshore Operations (Adco).
China currently imports 15 percent of UAE’s crude oil output as compared to 30 percent for Japan and 12 percent for South Korea.
The field is expected to yield 20,000 barrels per day when developed and is part of the wider onshore South East Full Field Development project that includes the Sahil and Qusahwira oilfields, which together are expected to increase Abu Dhabi Company for Onshore Operations’ (Adco’s) output to 1.8 million bpd by the end of 2017 from the current output of about 1.4 million bpd.
The Mender oilfield, some 300 kilometers south of Abu Dhabi, should yield 20,000 barrels per day with the development project, and Adco’s total output is expected to reach 1.8 million barrels per day by the end of 2017.