عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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)
TT
TT

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.

Most Viewed

 
 
Business

Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
TT
TT

Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)

After South Korea's president and his replacement were both deposed over a failed bid to impose martial law, deepening political turmoil is threatening the country's currency and shaking confidence in its economy.

The won, which plunged Friday to its lowest level against the dollar since 2009, has been in near-constant decline since President Yoon Suk Yeol's attempt to scrap civilian rule in early December.

Business and consumer confidence in Asia's fourth-largest economy have also taken their biggest hit since the start of the Covid-19 pandemic, according to figures released by the Bank of Korea.

Lawmakers impeached Yoon in mid-December on charges of insurrection, and on Friday they impeached his successor, acting president and prime minister Han Duck-soo, arguing that he refused demands to complete Yoon's removal from office and bring him to justice.

That thrust Finance Minister Choi Sang-mok into the additional roles of acting president and prime minister.

Choi has pledged to do all he can to end "this period of turmoil" and resolve the political crisis gripping the country.

- Constitutional question -

At the heart of the stalemate is the Constitutional Court, which will decide whether to uphold parliament's decision to impeach Yoon.

It must do so by a two-thirds majority, however. And because three of the court's nine seats are currently vacant, a unanimous vote is required to confirm the suspended president's removal.

Otherwise, Yoon will be automatically returned to office.

Lawmakers on Thursday nominated three judges to fill the vacant seats, but acting president Han refused to approve them, precipitating his own impeachment.

After an acrimonious day in which lawmakers from Yoon's party erupted in protest, the country's newest acting president sought to project calm.

"Although we are facing unexpected challenges once again, we are confident that our robust and resilient economic system will ensure rapid stabilization," Choi said Friday.

The 61-year-old career civil servant has inherited a 2025 budget -- adopted by the opposition alone -- which is 4.1 trillion won ($2.8 billion) less than the government had hoped for.

"There are already signs the crisis is having an impact on the economy," Gareth Leather of Capital Economics wrote in a note to clients, citing the dip in consumer and business confidence.

"The crisis is unfolding against a backdrop of a struggling economy," he added, with GDP growth expected to be just two percent this year, weighed down by a global slowdown in demand for semiconductors.

"Longer term, political polarization and resulting uncertainty could hold back investment in Korea," Leather wrote, citing the example of Thailand, another ultra-polarized country whose economy has stagnated since a coup in 2014.

- Democratic resilience? -

But other economists noted that the South Korean economy has so far weathered the chaos well.

As early as December 4, the day after Yoon declared martial law following a budget tussle with the opposition, the central bank promised to inject sufficient liquidity to stabilize the markets, and the Kospi Index has lost less than four percent since the start of the crisis.

"Like everyone, I was surprised when Yoon took those crazy measures," Park Sang-in, a professor of economics at Seoul National University, told AFP. "But there was a resilience of democracy."

"We come from being an underdeveloped country to one of the world's most dynamic economies in very few years, and Yoon Suk Yeol is a side effect of the growth," he added.

"Korean society was mature enough to counter his crazy actions."