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China National Petroleum seeks Middle East expansion with new Dubai office

China National Petroleum seeks Middle East expansion with new Dubai office

CNPC agreed to acquire an 8 per cent stake in Abu Dhabi National Oil Company’s 40-year onshore oil concession in February

China National Petroleum Corporation (CNPC) has announced plans to establish its Middle East headquarters in Dubai’s Jebel Ali Free Zone (JAFZA) as it eyes regional expansion.

The plans follow CNPC’s agreement in February to acquire an 8 per cent stake in Abu Dhabi National Oil Company’s 40-year onshore oil concession for $1.8bn.

Read: UAE’s ADNOC awards China’s CNPC 8% stake in onshore concession

The new complex will cover 55,000 square metres and include a 10,000-square-metre office and warehouse facility for storage, maintenance and repair of oil and gas equipment.

Zhu Junfeng, CEO of CNPC Middle East, said the headquarters would bring together the firm’s 16 listed firms and support its “expansion plans in the UAE and wider Middle East’.

“We will now be able to provide operational support throughout the Middle East with room to grow our portfolio while increasing demand for our services,” he said.

JAFZA allows 100 per cent foreign ownership and capital repatriation with exemption from income and corporate tax for up to 50 years. The zone is home to more than 850 oil, gas and petrochemical firms.

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