The Abu Dhabi National Oil Company forms a joint venture with China National Petroleum Corporation to develop the Gulf emirate's oil reserves, state news agency WAM says.
DUBAI/BEIJING, April 29 (Reuters) - China National Petroleum Corporation (CNPC) has secured the rights to produce and export oil from Abu Dhabi, helping China secure more fuel for its rapid economic growth.
State-run CNPC has expanded over the past decade to over 30 countries around the globe to help secure supplies of the oil and gas that China needs to sustain its economic growth.
Under the latest deal granted by the president of the United Arab Emirates (UAE), China's biggest energy company will help develop several onshore and offshore fields in Abu Dhabi and take a share of any oil produced, UAE state news agency WAM said.
"It's a typical concession, meaning you pay the royalty and then you get the JV (joint venture) share of production," a senior source at CNPC told Reuters.
The UAE concession system allows oil companies to acquire equity in hydrocarbon resources, with state-run Abu Dhabi National Oil Company (ADNOC) holding a 60 percent stake in each joint venture and foreign partners usually sharing the other 40 percent.
Under the new joint venture, called the Al Yasat Company for Petroleum Operations, the Chinese energy giant will be the sole foreign partner with 40 percent, and ADNOC will hold the 60 percent controlling stake.
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