Abu Dhabi: French energy giant Total expressed optimism that they would be part of Adnoc’s offshore concession that will expire in March next year.
Currently Total has 13.33 per cent stake in the offshore oil concession operated by the Abu Dhabi Marine Operating Company (Adma-Opco). BP and Japan Oil Development Company (Jodco) are the other companies in the concession with Adnoc holding a majority stake of 60 per cent.
Speaking to Gulf News in an interview, Hatem Nuseibeh, President of Total, exploration and production and group representative in the UAE said they have a good relationship with Adnoc and understand their needs well.
“We are discussing with Adnoc for a quite a while now on offshore concession. There is a competition and I am hopeful of good results,” Nuseibah said.
There are also other companies which are eyeing a stake in the offshore concession including companies from Japan, India, Norway, Germany, among others.
Adnoc earlier this year said it is in advanced discussions with more than a dozen potential partners in awarding an offshore oil concession, comprising a mix of the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot fields that produce around 700,000 barrels a day of oil and is expected to have a production capacity of about 1.0 million barrels per day by 2021.
The existing Adma-Opco concession will be split into two, or more, concessions with new terms to unlock greater value and increase partnership opportunities.
Adnoc, on behalf of the Abu Dhabi government, will retain a 60 per cent shareholding in the new concession areas while the remaining 40 per cent will be given to different selected firms.
Total is also looking to expand its relationship with Adnoc and look for new opportunities in downstream business too, he said.
“We are discussing with Adnoc on many subjects so that we can enlarge relationship with them especially in petrochemicals and refining. We are already partners in their fertilisers business and want to expand further.”
When asked how the firm is coping with low oil prices, he said cost of production of oil is low in Abu Dhabi compared to many other parts of the world helping them to resist better to low oil prices.
“We also initiated a strong effort to cut down costs two years ago and succeeded in it.”
Total is also involved in the development of Abu Dhabi’s onshore oilfields with a 10 per cent stake in Abu Dhabi Company for Onshore Oil Operations (Adco) concessions, which is renamed as Adnoc onshore.
The oil company signed the concession agreement with Adnoc two years ago and is said to have paid $2.2 billion as a bonus amount.
