ADNOC Awards 4% Stake to China's ZhenHua Oil Company in Onshore Concession

Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)
Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)
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ADNOC Awards 4% Stake to China's ZhenHua Oil Company in Onshore Concession

Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)
Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)

North Petroleum International Company, a subsidiary of China ZhenHua Oil Co. Ltd, acquired four percent stake in Abu Dhabi National Oil Company's (ADNOC) onshore concession, previously held by CEFC China Energy Company Limited (CEFC China).

ADNOC said ownership change, which was approved by Abu Dhabi’s Supreme Petroleum Council, came in line with the UAE leadership’s directives to grant access to Abu Dhabi’s oil and gas concessions to partners who offer technology, operational experience, capital or market access.

"China ZhenHua Oil’s acquisition of the four percent stake in the onshore concession underlines the continued pull of the UAE as a leading global energy and investment destination, backed by a strong, stable and secure commercial environment," said UAE Minister of State and ADNOC Group CEO Sultan Ahmed al-Jaber.

"With China ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy,” Jaber added.

China ZhenHua Oil is 100 percent indirectly owned by the Assets Supervision and Administration Commission of the State Council, a Chinese government agency that supervises and manages over a hundred state-owned assets and enterprises in a variety of sectors, including oil and petrochemicals and transport.

Chairman of China Zhenhua Oil Liu Yijiang, for his part, said that ADNOC has succeeded over the past several decades in developing a number of oil fields in Abu Dhabi's large limestone and carbonated reservoirs.

"As a new partner in UAE’s upstream sector, [China Zhenhua Oil] is honored to join the operating concession and will contribute its capabilities in technology, management and supply chains, which may maximize the benefits and value for all,” Yijiang added.

ZhenHua Oil operates 11 oil and gas upstream projects in six countries, with gross production of close to 10 million metric tons per year.

It is also in the fuel storage, transportation and refining business, with a trading desk in Singapore.

Following this step, China ZhenHua Oil will join the onshore concession and shareholders of ADNOC Onshore, including BP of the UK (10 percent), Total of France (10 percent), China National Petroleum Corporation (eight percent), Inpex Corporation of Japan (five percent), and GS Energy of South Korea (three percent) as participants in the onshore concession and shareholders of ADNOC Onshore.



Türkiye's Stock Market Hit Hard after Arrest of Istanbul Mayor

Police officers intervene as flames rise from a fire in a dustbin during a protest by students against the detention of Istanbul Mayor Ekrem Imamoglu, in Istanbul, Türkiye, March 21, 2025. (Reuters)
Police officers intervene as flames rise from a fire in a dustbin during a protest by students against the detention of Istanbul Mayor Ekrem Imamoglu, in Istanbul, Türkiye, March 21, 2025. (Reuters)
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Türkiye's Stock Market Hit Hard after Arrest of Istanbul Mayor

Police officers intervene as flames rise from a fire in a dustbin during a protest by students against the detention of Istanbul Mayor Ekrem Imamoglu, in Istanbul, Türkiye, March 21, 2025. (Reuters)
Police officers intervene as flames rise from a fire in a dustbin during a protest by students against the detention of Istanbul Mayor Ekrem Imamoglu, in Istanbul, Türkiye, March 21, 2025. (Reuters)

The Istanbul stock exchange's main index was hit hard on Friday, closing 7.8 percent down on the third day of protests over the arrest of Istanbul mayor Ekrem Imamoglu.

The 53-year-old mayor -- Erdogan's main political rival -- was arrested on Wednesday, days before he was due to be named the CHP party's candidate for the 2028 presidential race.

The BIST 100 had already slipped by 8.7 percent on Wednesday following Imamoglu's arrest over allegations of "corruption" and links to a "terrorist organization".

The damage was limited to a fall of 0.5 percent on Thursday, but faced with a sharp fall on Friday, trading was suspended twice in the morning.

The index fell below 9,000 points during Friday trading for the first time since early November, a fall of more than 16.5 percent over five days.

Imamoglu's party has denounced his arrest as a "coup" and international organizations including the European Union have expressed concern.

It has also sparked street protests, which President Recep Tayyip Erdogan on Friday denounced as "street terror".