The China National Petroleum (CNPC) has signed agreements with the Abu Dhabi National Oil Company (Adnoc) to acquire stakes in two concession areas located off the coast of Abu Dhabi for a total consideration of AED4.3bn ($1.17bn).

Pursuant to the deals, CNPC has secured a 10% interest in the Umm Shaif and Nasr concession for AED2.1bn ($575m) and a 10% interest in the Lower Zakum concession for AED2.2bn ($600m). The transactions were completed via CNPC subsidiary PetroChina.

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The stakes in the concessions, which are operated by Adnoc Offshore, will be valid for a period of 40 years.

The current agreements come after oil and gas firms Eni and Total clinched deals to acquire stakes in both the concessions.

“CNPC’s involvement in our offshore concession areas will help to maximise the returns from what are very attractive, stable and long-term opportunities.”

Adnoc Group CEO Sultan Ahmed Al Jaber said: “These agreements are new milestones in ADNOC’s thriving partnership with CNPC and also represent an important platform upon which we can explore opportunities further downstream.

“CNPC’s involvement in our offshore concession areas will help to maximise the returns from what are very attractive, stable and long-term opportunities.

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“At the same time, these agreements further underline the international energy markets’ confidence in ADNOC’s 2030 growth strategy as we accelerate delivery of a more profitable upstream business and generate strong returns for the UAE.”

Last February, CNPC secured an 8% interest in an onshore concession in the region.

The company also holds a 40% stake in the Al Yasat concession with Adnoc.

Eni holds a 10% interest in the Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession.

Total agreed to acquire a 20% stake in the Umm Shaif and Nasr concession, while an ONGC Videsh led consortium and Japan’s Inpex each hold a 10% interest in the Lower Zakum concession.

Adnoc operates both the concessions with a 60% ownership in each of them.