Eversheds Sutherland represented China National Petroleum Corporation (CNPC) on the transfer of certain rights in the Lower Zakum, and Umm Shaif and Nasr offshore concessions, to the China National Offshore Oil Corporation (CNOOC).
Abu Dhabi National Oil Company (ADNOC), the state-owned oil company of the United Arab Emirates (UAE), agreed to CNPC transferring a 4% interest in Lower Zakum, and Umm Shaif and Nasr concessions to CNOOC.
The transfer was also approved by the Abu Dhabi Supreme Petroleum Council (SPC), making it the first time a dedicated Chinese offshore oil and gas company has joined ADNOC concessions. The transfer of rights significantly strengthens growing bilateral ties between the United Arab Emirates (UAE) and China.
Eversheds Sutherland offices in Beijing, Hong Kong, London and Washington DC worked together on the transaction. The teams were led by Ingrid Zhu-Clark (head of China oil and gas), Stephen Mok (head of corporate, Asia, Hong Kong), Adam Ferguson (head of competition, Asia, Hong Kong), and Alex Doughty (partner, Hong Kong) with support from lead associate Qiao Kang in Beijing.
The cross-office team included: Jubilee Easo and James Lindop (partners, London), Mark Herlach (global co-chair – antitrust and trade, Washington), Jae Lemin (partner, Hong Kong) and Wesley Pang (head of international arbitration, Greater China, Hong Kong).
After closure of the transaction, CNOOC joined an ONGC Videsh-led consortium, INPEX Corporation, CNPC, Eni and Total as participants in the Lower Zakum concession; and Eni, Total and CNPC as participants in the Umm Shaif and Nasr concession.
CNPC is a major national oil and gas corporation of China and one of the largest integrated energy groups in the world, with its headquarters in Dongcheng district, Beijing. It was ranked fourth in 2019 Fortune Global 500, a global ranking of the largest corporations by revenue.
ADNOC is the world’s 12th-largest oil company by production, and is the UAE’s largest company.