China's state owned oil and petroleum giant The China National Petroleum Corporation (CNPC) on Sunday snapped an 8 percent stake in Abu Dhabi's largest oil concession in a deal that is worth estimated to be $1.77 billion, the emirates company said.  

CNPC is the third Asian oil company to get a stake in the Abu Dhabi National Oil Co (ADNOC) alongside Japanese and South Korean oil companies, while two other major European oil companies also own a stake in the oil concession.  

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"This will be a mutually beneficial partnership that will enable us to maintain strong production levels," ADNOC chief executive, Sultan Ahmed Al Jaber, said on the deal.  

CNPC chairman Wang Yilin said that he is hopeful that this multibillion dollar deal would "lead to further opportunities to participate in the UAE's energy sector."

Analysts claim that ADNOC's latest deal with CNPC clearly demonstrates its tilt towards Asian companies in a bid to tap into Asia's growing oil market. China's hunger for oil propelled by its enormous population and economic growth makes it an even more lucrative market for all the gulf based oil companies.

The Asian oil companies, on other hand, consider gulf region as the major source to meet the overwhelming demand of oil and natural gas existing in their respective countries, analysts say.

CNPC has also invested in other oil refineries in the region, including a joint venture project with British Petroleum to develop Iraq's biggest oil field and also a stake in Saudi Arabia refinery.  Besides, the Chinese oil giant has invested in over 30 oil projects spanning across Central Asia, Russia, America and, Africa and the Asia Pacific.

The Chinese oil giant is responsible for solely meeting the more than half of the oil and natural gas demands of its country. According to a rough estimate, the company produces more than 50 percent of China's oil output and nearly 71 percent of its natural gas production.

Meanwhile, the ADNOC would be still hunting for a partner for the remainder of the concession, the statement said.   

Tagschina, China National Petroleum Corporation (CNPC), cnpc, Abu Dhabi, Abu Dhabi National Oil Co, ADNOC