China’s state-run oil giant CNPC has purchased an eight percent stake in Abu Dhabi’s largest oil venture in exchange for a $1.8 billion signing bonus, as the Middle Eastern country increasingly looks to Asia, its largest market, for investment to raise production, Bloomberg reported. Abu Dhabi holds six percent of the world’s total oil reserves. CNPC is the onshore venture’s third Asian partner, joining South Korean and Japanese firms, as well as France’s Total and BP. The latter two supermajors joined the project in January 2015 and December 2016, respectively.
According to the International Energy Agency’s most recent monthly report, Asia will see the most rapid growth in energy demand over the next 20 years. Abu Dhabi, Iraq and Saudi Arabia are among the Middle Eastern countries accessing Asian investment to boost output.
CNPC joins the Abu Dhabi Company for Onshore Petroleum Operations, or ADCO. Total and BP each hold a 10% stake in the venture. Japan’s Inpex holds five percent and South Korea’s GS Energy holds three percent. Abu Dhabi plans to keep a 60%stake in ADCO and is looking for an investor for the four percent remaining stake, Adnoc said in the statement quoted by the Bloomberg report.