ABU DHABI, UAE – Abu Dhabi National Oil Co. (ADNOC) is in discussions with over a dozen potential companies concerning the future of Abu Dhabi Marine Operating Co.’s (ADMA-OPCO) offshore UAE concession that expires next March.
Those interested in participating in the next phase are a mix of existing concession holders in ADNOC’s offshore fields and newcomers.
The existing concession will be split into two, or more, concessions with new terms designed to “unlock greater value and increase partnership opportunities.” These will cover the offshore Lower Zakum, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot (SARB) fields.
ADNOC, on behalf of Abu Dhabi’s government, will retain a 60% share of the new concession areas.
H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of ADNOC said: “Discussions are progressing well and companies have been drawn by our stable investment environment and ADNOC’s reliability as a partner, as well as the attractive and sustainable returns that will be generated.
“As part of ADNOC’s new partnership approach, we look forward to working with partners who will bring new and innovative thinking to the table. Partners who can demonstrate tangible value-add to our operations through technology, expertise, long-term capital and market access, as well as a shared commitment to drive operational performance and efficiency to deliver smart growth and strong financial returns.
“Our ideal partners should also be willing to invest across different parts of our value chain.”
ADNOC highlights favorable conditions for business, such as the UAE’s stable investment climate, its low production costs, and its record on health safety and protection of the environment.
Following last year’s decision to consolidate the offshore operations of ADMA-OPCO and the Zakum Development Co. (ZADCO), the new ADMA concessions and the existing Upper Zakum concession, operated by ZADCO, will be operated by the new integrated offshore company, with a view to capitalizing on operational synergies and enhanced performance.
Consolidation of the two companies should be completed before the end of the year.
The existing concession area operated by ADMA-OPCO, which produces around 700,000 b/d of oil, should attain a production capacity of about 1 MMb/d by 2021.
ADNOC’s other goals include tapping into gas caps and undeveloped deep and sour gas reserves.
Current shareholders in ADMA-OPCO are BP (14.67%), Total (13.33%) and JODCO (12%), while the partners in ZADCO are ExxonMobil (28%) and JODCO (12%). The Abu Dhabi government, through ADNOC, has a 60% interest in both operating companies.