NEWS - SOUTH AMERICA
ADNOC Announces Addition of New Chinese Partner following a Transfer of Stakes in its Offshore Concessions from CNPC to CNOOC
The Abu Dhabi National Oil Company ( ADNOC ) announced , today , its agreement to the transfer of rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions from the China National Petroleum Corporation ( CNPC ) to China National Offshore Oil Corporation ’ s subsidiary CNOOC Limited ( CNOOC ). The transfer has been approved by Abu Dhabi ’ s Supreme Petroleum Council ( SPC ) and marks the first time that a dedicated Chinese offshore oil and gas company joins ADNOC ’ s concessions .
The transfer of concession rights to another key Chinese company reinforces the strong and strategic bilateral ties between the United Arab Emirates ( UAE ) and the world ’ s second-largest economy , China .
The transfer comprises of CNOOC acquiring ( through its holding company , CNOOC Hong Kong Holding Limited ( CNOOC HK )), a 40 percent interest in CNPC ’ s majority-owned subsidiary PetroChina Investment Overseas ( Middle East ) Ltd ( PetroChina ).
His Excellency Dr . Sultan Ahmed Al Jaber , UAE Minister of Industry and Advanced Technology and ADNOC Group CEO , said : “ The transfer of part of CNPC ’ s share in two of ADNOC ’ s major offshore concessions to CNOOC reflects the long-standing strategic and economic bilateral relations between the UAE and China , and highlights the continued pull of the UAE as a leading global energy and investment destination , backed by a stable and reliable business environment . The transfer also illustrates ADNOC ’ s strengthened access to international markets and partners and our commitment to generating sustainable returns for the UAE .
“ CNOOC joins our other international partners in the Lower Zakum and Umm Shaif and Nasr concessions and bring world-class expertise and technology to help us continue to maximize value from the concessions as we create a more profitable upstream business and deliver our 2030 strategy .”
PetroChina holds a 10 percent interest in the Lower Zakum concession and a 10 percent interest in the Umm Shaif and Nasr concession . As a result of the transfer , CNOOC will hold a 4 percent interest in the Lower Zakum concession and a 4 percent interest in the Umm Shaif and Nasr concession , while PetroChina will retain a 6 percent stake in the concessions .
Mr . Dai Houliang , Chairman of CNPC , said : “ CNPC has had successful cooperation with ADNOC , and we believe that the cooperation with CNOOC will bring more value to ADNOC and the partners of the concession . We will leverage the strengths of the two Chinese companies , which will help reinforce the development of these two concessions .”
Mr . Wang Dongjin , Chairman of CNOOC , said : “ We are very pleased to participate in the Lower Zakum and Umm Shaif and Nasr concessions . This further strengthens the strategic relationship with ADNOC and PetroChina . CNOOC will leverage our extensive expertise in the offshore sector and be dedicated to value creation in these concessions for our mutual benefit .”
This agreement follows the signing of a comprehensive framework agreement between ADNOC and CNOOC in July 2019 to explore new opportunities for collaboration in both the upstream and downstream sectors as well as in liquified natural gas ( LNG ).
CNOOC joins an ONGC Videsh-led consortium ( 10 percent ), INPEX Corporation ( 10 percent ), CNPC ( 6 percent ), Eni ( 5 percent ), and Total ( 5 percent ) as participants in the Lower Zakum concession ; and Eni ( 10 percent ), Total ( 20 percent ), and CNPC ( 6 percent ) as participants in the Umm Shaif and Nasr concession . ADNOC retains a 60 percent majority ownership interest in both concessions .
CNOOC is the largest producer of offshore crude oil and natural gas in China and one of the largest independent oil and gas exploration and production companies in the world . As at the end of 2019 , the company owned net proved reserves of approximately 5.18 billion barrels of oil equivalent ( BOE ).
Chinese energy companies have steadily increased their participation in ADNOC ’ s upstream and downstream operations . At the same time , ADNOC has identified China – the world ’ s second-largest oil consumer – as an important growth market for its crude oil and petrochemical products . •
The Hague Court Rules for Chevron in Ecuador Dispute
The District Court of The Hague today ruled in favor of Chevron
Corporation in its dispute with the Republic of Ecuador , upholding a 2018 arbitral award rendered by an international tribunal administered by the Permanent Court of Arbitration .
In its unanimous award , issued pursuant to the U . S . -Ecuador Bilateral Investment Treaty , the international arbitral tribunal found that a $ 9.5 billion Ecuadorian judgment against Chevron was procured through egregious fraud and corruption by the plaintiffs ’ legal team , including bribery of the presiding judge and ghostwriting of the judgment . It held the judgment unenforceable under international law . The tribunal also rejected the underlying environmental allegations against Chevron . In its award , the tribunal found that a Chevron subsidiary completed an environmental remediation program supervised and approved by the Republic of Ecuador and that the Republic released the environmental claims on which the fraudulent Ecuadorian judgment was based . Any responsibility for current environmental conditions in Ecuador lies with the state-owned oil company , which continues to operate in the same area today .
The District Court of The Hague upheld the award in full and rejected the Republic of Ecuador ’ s attempt to set it aside , noting that “ the fraudulent character of the Lago Agrio judgement and the proceedings preceding it is common ground between the parties .” The court found that the international tribunal acted within its remit when issuing the award , and that the award was well reasoned and complied with the applicable law and public policy . The court concluded that the international tribunal ’ s orders properly sought to “ remove the consequences of a fraudulent judgment that was rendered by a corrupt judge .” The court held that “ because none of the setting aside grounds brought forward by Ecuador succeed , the claims will be denied .”
The court ’ s ruling follows decisions from courts in Argentina , Brazil , Canada , Gibraltar and the U . S . rejecting the fraudulent Ecuadorian judgment against Chevron . In July , Argentina ’ s highest court unanimously rejected the plaintiffs ’ bid to enforce the corrupt judgment , bringing to an end the last pending recognition proceeding against Chevron . Even Ecuador finally admitted in a public filing earlier this year that the $ 9.5 billion judgment issued by its courts against Chevron is “ fraudulent .” Chevron ’ s arbitration against the Republic of Ecuador is now in its final stage , where the company is seeking to recover from the Republic of Ecuador costs it has incurred to expose and defend against the fraud . •
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