Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) said on Monday it 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 in a statement.
The company said potential partners are a mix of existing concession holders in Adnoc’s offshore fields and new participants.
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.
The existing concession area operated by Adma-Opco produces 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. Adnoc further said it is planning to boost oil production capacity to 3.5 million barrels per day in 2018.
The current shareholders in Adma-Opco are BP (14.67 per cent), Total (13.33 per cent) and Jodco (Japan Oil Development Company — 12 per cent). The concession will comprise a mix of the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot fields.
“We have received great interest in the concessions from both existing and potential new partners. 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,” Dr Sultan Ahmad Al Jaber, UAE Minister of State and Group CEO of Adnoc, said in a statement.
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, he said.
“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,” he added.
Russian energy company Lukoil, which is looking to expand its operations in the Middle East, is keen to participate in Abu Dhabi offshore concession, the company’s vice-president in the region, Gati Al Jebouri, told Gulf News in a recent interview. Japan Oil Development Company and Total also have expressed their intentions to renew offshore concession.
Adnoc earlier this year finalised a mix of existing and new partners in onshore oil concession including firms from France, UK, Japan, South Korea and China.
An analyst who did not wish to be named said there will not be any surprise announcements in awarding offshore concession. “The UAE will want to send a strong signal of business and it will be whoever they can get the best terms from, which probably means the Chinese at the moment,” he said.
The Abu Dhabi oil giant is also looking to float some of its services businesses and enter tie-ups with global investors to help it create new revenue streams and secure more market access.
