Abu Dhabi: German energy company Wintershall is planning to expand its involvement in Abu Dhabi and is “highly interested” in participating in Abu Dhabi’s offshore concession that expires next March, its chief executive officer said on Tuesday.
The company is currently involved in technical evaluation of Shuwaihat sour gas and condensate field in the Western region of the emirate in partnership with Abu Dhabi National Oil Company (Adnoc) and the Austrian firm OMV.
“We are interested in any kind of concession and production in Abu Dhabi. We want to make Abu Dhabi an important part of our production portfolio,” said Mario Mehren while speaking to reporters on the sidelines of Abu Dhabi International Petroleum Exhibition and Conference without elaborating further.
Adnoc is in advanced discussions with more than a dozen potential partners in awarding an offshore oil concession, currently operated by the Abu Dhabi Marine Operating Company (Adma-Opco) that expires next March.
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 said earlier this year.
The company said potential partners are a mix of existing concession holders in Adnoc’s offshore fields and new participants.
Giving an update on Shuwaihat field, Mehren said that they recently completed the company’s first offshore well successfully.
“We are looking forward to discussions with Adnoc about the future development of Shuwaihat project in a bigger and broader context of development of western sour gas region. We want to become a significant producer of gas and also oil in the country.”
Speaking on Libya, he said it is a serious issue and don’t see any progress of stabilisation in the country with a number of institutions and governments and other groups fighting for power impacting onshore production in the country.
“We are in a constructive dialogue with NOC (National Oil Corporation) to talk about our contractual relationship. We have been able to produce until the beginning of November and we have to stop production again due to instability,” he said.
The company was producing about 60,000 to 65,000 barrels a day till it stopped production.
Wintershall is also looking for opportunities in Iran and is in talks with National Iranian Oil Company to develop some of the oilfields in the Islamic Republic but is waiting for the political situation to improve.
On oil price outlook, he said the market is more and more balanced and there is a significant drawdown of stocks.
“I hope it will be at the same level next around this time. Oil picking up so fast is not healthy for the industry.”
The firm’s investments are about a billion euros (Dh4.32 billion) each year across the globe and is expected to remain the same in 2018, he added.