Two Chinese firms won a total 12 percent of stakes for Abu Dhabi's biggest oil concession, beating other foreign bidders.

Shanghai-based CEFC China Energy Co. snatched the last 4 percent stake for the onshore venture, Abu Dhabi National Oil Co. (ADNOC) confirmed on Monday. CEFC will be paying an $888 million signing bonus. China National Petroleum Corp. (CNPC) was also awarded an 8 percent in exchange for a signing bonus of $1.8 billion.

Like Us on Facebook

The deal with ADNOC marks China's debut as a major shareholder in the largest oilfield operator in the United Arab Emirates, Bloomberg pointed. When combined, the two Chinese firms surpassed oil majors BP Plc and Total SA, which have a 10-percent stake each in the onshore concession operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).

But the recent deal will help the Middle Eastern emirate to establish a stronghold in Asia, its biggest and fastest market on energy demand in the next 20 years, the International Energy Agency noted. Abu Dhabi is one of the Persian Gulf oil producers that have been eyeing on the Asian market for energy investments.

"You can see the attraction for Abu Dhabi and for China on both sides of this deal," Richard Mallinson, London-based Energy Aspects Ltd.'s analyst, told Bloomberg. "In China, Abu Dhabi sees a huge and growing importer. China's gone to great lengths to establish supply footholds, so there's a real benefit in tapping large and stable reserves."

Both CNPC and CEFC will join the ADCO. Japan's Inpex Corporation and South Korea's GS Energy, with 5 percent and 3 percent stake, respectively, are the other foreign shareholders in the venture. No Asian companies were included in the past concession for the onshore fields.

Meanwhile, Abu Dhabi plans to retain more than half (60 percent) of ADCO's stake.  ADCO produces nearly half of ADNOC's 3.15-million-bpd output, which is currently lower as UAE comply with the OPEC supply-cut deal. ADNOC is slated to increase its output to 3.5 million barrels of oil per day next year.

TagsChina UAE oil, Abu Dhabi, CEFC China Energy Co., China National Petroleum Corp., Abu Dhabi National Oil Co, oil energy, Petroleum