In a strategic move, China’s Zhenhua Oil is poised to double its crude oil offtake from the Abu Dhabi National Oil Company (ADNOC) to 200,000 barrels per day. This increase follows Zhenhua’s new role as the lead developer for the Bu Hasa oilfield, one of the UAE’s largest. The deal was finalized around April, granting Zhenhua an additional 5 million tons, or 100,000 barrels per day, on top of its existing agreement as an equity holder in ADNOC Onshore.
Zhenhua, which replaced TotalEnergies in January, is tasked with developing Bu Hasa’s production plans and managing cost targets. The total crude contracted from ADNOC is expected to ramp up by the end of the year. This agreement has not been previously reported, and both Zhenhua and TotalEnergies declined to comment, while ADNOC refrained from discussing commercial matters.
Established in 2003 under Norinco, Zhenhua Oil specializes in international oil and gas production, holding assets in countries like Iraq, Pakistan, and Kazakhstan. To further its trading activities, Zhenhua is set to place its first trader in Abu Dhabi this month, enhancing its presence in the region. This expansion aligns with ADNOC’s efforts to strengthen investment ties with Chinese partners, highlighted by the establishment of an office in Beijing in April.