An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018.
As asset leader, Zhenhua oversees Bu Hasa’s development plan and ensures production and cost targets are met. In April, the company finalized an agreement to receive an additional 5 million tons of crude annually, equivalent to 100,000 bpd, from ADNOC. This adds to Zhenhua’s existing 100,000 bpd offtake as a 4% stakeholder in ADNOC’s onshore concessions, a stake acquired in 2018 alongside partners like BP and CNPC. A source stated: “The total amount of crude Zhenhua is contracted to receive from ADNOC will be ramped up to 200,000 bpd by around year-end.”
This increased offtake strengthens Zhenhua’s trading of Murban crude, a premium grade valued for its low sulfur content and refining versatility. To support this expansion, Zhenhua will place its first crude trader in Abu Dhabi this month, complementing its trading hubs in Beijing and Singapore. In May, Zhenhua achieved a milestone by completing its first spot delivery of Murban crude through the Platts Dubai Window platform to a PetroChina refinery. A Zhenhua representative said: “This marks a major milestone for Zhenhua—its first physical crude delivery via the Platts mechanism—signifying a strategic breakthrough in its international crude trading journey.”
Established in 2003 under Norinco, Zhenhua specializes in international oil and gas production, with assets in Iraq, Pakistan, and Kazakhstan. In April, ADNOC opened a Beijing office to foster closer collaboration with Chinese partners. Neither Zhenhua nor ADNOC commented on these developments, with ADNOC stating it does not discuss commercial matters. These efforts underscore Zhenhua’s growing presence in the UAE’s energy sector and its role in global oil markets.
