Chinese state firm Zhenhua has been expanding its Middle East presence of late, but until now lacked a centerpiece asset. Capitalizing on the troubles faced by private Chinese firm CEFC, Zhenhua this week swooped to pick up the firm’s 4% stake in the 1.8mn b/d capacity Adnoc Onshore concession.
Adnoc Onshore immediately becomes the crown jewels of Zhenhua’s portfolio, through its North Petroleum International subsidiary (also known as Zhenhua Oil). None of the parties involved have stated how much Zhenhua paid for the asset, but when CEFC secured its 4% stake in February 2017 it paid $888mn. CEFC acquired its stake at the same time as Chinese state giant CNPC paid $1.77bn for 8%. (CONTINUED - 578 WORDS)
