Sheikh Mohamed and Paolo Gentiloni look on as Dr Sultan Ahmed Al Jaber and Claudio Descalzi sign deals that awarded the Italian firm two concessions in Abu Dhabi oil and gas sector.-Twitter image
Dubai - Abu Dhabi National Oil Company (Adnoc) entered into two agreements with Eni awarding it stakes in two of its offshore concession areas.
Published: Sun 11 Mar 2018, 10:00 PM
Last updated: Mon 12 Mar 2018, 12:38 AM
An Italian multinational oil and gas company has been given concession rights for the first time in Abu Dhabi's oil and gas sector.
On Sunday, Abu Dhabi National Oil Company (Adnoc) entered into two agreements with Eni awarding it stakes in two of its offshore concession areas.
His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Paolo Gentiloni, Prime Minister of Italy, witnessed the signing of two agreements involving Dh3.2 billion participation fees for Umm Shaif and Nasr, and Lower Zakum concessions.
Gentiloni underscored the importance of the agreements as a fundamental milestone for further enhancing the excellent bilateral cooperation between the two countries.
Dr Sultan Ahmed Al Jaber, Adnoc Group Chief Executive Officer, and Claudio Descalzi, CEO of Eni, signed the agreements, which have a term of 40 years, backdated to March 9, 2018.
Dr Al Jaber said the agreements underlined the international market's confidence in Adnoc's long-term growth plans and the UAE's stable and reliable investment environment. With these agreements, Adnoc continues to leverage its 46-year legacy of successful energy partnerships, in support of its 2030 strategy. They will enhance its ability to capitalise on key trends which are driving growing energy demand and ensure Adnoc continues to deliver long-term sustainable returns for the nation's benefit."
Descalzi said: "Eni is committed to apply its experience in the development and production of world-class oil and gas resources in support of Adnoc's objectives to cost-effectively increase production capacity, at competitive cost."
Terms of agreement
Under the terms of the agreements, Eni has been awarded a 10 per cent interest in the Umm Shaif and Nasr concession and a five per cent interest in the Lower Zakum concession.
Eni contributed a participation fee of Dh2.1 billion to enter the Umm Shaif and Nasr concession and a fee of Dh1.1 billion to enter the Lower Zakum concession. Both concessions will be operated by Adnoc Offshore, a subsidiary of Adnoc, on behalf of all concession partners. Adnoc is finalising opportunities, with potential partners, for the remaining 15 per cent of the available 40 per cent stake in the Lower Zakum concession and for the remaining 30 per cent stake in the Umm Shaif and Nasr concession. Adnoc retains a 60 per cent majority share in both concessions. Eni is active in 73 countries, including north, west and east Africa, the Gulf of Mexico, southern Europe and Alaska.
issacjohn@khaleejtimes.com
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