Adnoc in advanced talks with partners for offshore concession

Abu Dhabi - The state-owned national giant is reportedly looking to raise $5 billion funds.

Abu Dhabi National Oil Company (Adnoc) on Monday said it was in advanced talks with over a dozen potential partners for offshore concession and will also split its Adma-Opco concession into two or more to unlock greater value and increase partnership opportunities.

The company said in a media statement on Monday that its offshore concession, currently operated by Abu Dhabi Marine Operating Company (Adma-Opco), will expire in March 2018. Among its potential partners are existing concession holders in offshore fields as well as new participants.

"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," said Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of Adnoc.

The state-owned national giant is reportedly looking to raise $5 billion (Dh18.35 billion) funds, including bank loans, to expand its business and ensure sustainable growth.

Adnoc said on Monday the concession will be comprised of a mix of the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot fields. The company said it would retain 60 per cent shareholding in the new concession areas.

The state-owned giant's existing shareholders in Adma-Opco are BP (14.67 per cent), Total (13.33 per cent) and Jodco (12 per cent). While the international shareholders in Zadco are ExxonMobil (28 per cent) and Jodco (12 per cent). Adnoc holds 60 per cent interest in both operating companies.

"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," Al Jaber added.

The Abu Dhabi energy giant said the new Adma concessions and the existing Upper Zakum concession, operated by Zadco, will be operated by the new integrated offshore company. The consolidation of the two companies is due to be completed before the end of the year.

The existing concession area operated by Adma-Opco, which produces around 700,000 barrels a day of oil, is planned to have a production capacity of about one million barrels per day by 2021. Adnoc aims to boost oil production capacity to 3.5 million bpd in 2018.

Adnoc's fuel retail unit on Monday announced opening of Hafeet North and Hafeet South service stations in Al Ain city, taking the total number of service stations operated by the company in the Al Ain Region to 43.

waheedabbas@khaleejtimes.com