China’s Zhenhua Oil is poised to double its crude offtake from Abu Dhabi National Oil Company (Adnoc) to 200,000 barrels per day (bpd) after assuming a new role in leading the development of one of the UAE exporter’s most significant oilfields, according to three Chinese industry sources.
In January, the smallest of China’s state-owned oil firms replaced France’s TotalEnergies as the asset leader for Bu Hasa – the UAE’s largest onshore oilfield – following a competitive bidding process, the sources said.
Under its new leadership role, Zhenhua is tasked with formulating Bu Hasa’s development strategy and achieving production and cost targets. As part of this arrangement, it also signed a fresh annual supply deal to secure an additional 5 million tonnes, or around 100,000 bpd, from Adnoc, the sources noted.
The offtake agreement, concluded in April, and Zhenhua’s appointment at Bu Hasa have not been publicly disclosed before. This is in addition to Zhenhua’s existing 100,000 bpd supply as an equity partner in Adnoc Onshore, the sources added. They requested anonymity as they were not authorised to speak to the press.
By year-end, Zhenhua’s total contracted crude volume from Adnoc will rise to about 200,000 bpd, one of the sources confirmed.
Zhenhua and TotalEnergies did not respond to media queries. Adnoc stated that it does not comment on commercial matters.
In April, Adnoc opened an office in Beijing to strengthen investment partnerships with Chinese entities.
Founded in 2003 under the state defence conglomerate Norinco, Zhenhua focuses on oil and gas exploration and production outside China, with assets in Iraq, Pakistan, and Kazakhstan.
In 2018, the company secured a 4% stake in Adnoc’s expansive onshore concessions, joining major players such as BP, TotalEnergies, and CNPC.
