ADNOC in Advanced Discussions With Potential Partners for New Offshore Oil Concession

BANGALORE, August 8, 2017 /PRNewswire/ --

Widespread interest from IOCs and global investors in world-class concession opportunity 

Concession will be split into two or more new concessions to create greater value and increase partnership opportunities 

Announcement actions ADNOC's new partnership approach that targets market access, long-term capital and technological expertise to deliver smart growth  

The Abu Dhabi National Oil Company (ADNOC) announced today, it is in advanced discussions with more than a dozen potential partners who have expressed a significant interest in the offshore concession, currently operated by the Abu Dhabi Marine Operating Company (ADMA-OPCO) that expires next March. The potential partners are a mix of existing concession holders in ADNOC's offshore fields and new participants.

The announcement comes shortly after ADNOC unveiled the expansion of its strategic partnership model, as well as the active management of its portfolio of assets. ADNOC's new approach, which builds on its flexible and enhanced operating model as well as its 2030 growth strategy, will enable the company to unlock and maximize value from across the Group. The new approach will deliver improved revenue streams and ensure smart growth, while also enhancing performance and securing greater access for ADNOC's products in key growth markets.

The existing ADMA-OPCO concession will be split into two or more concessions with new terms to unlock greater value and increase partnership opportunities. The concession will be comprised of a mix of the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot (SARB) fields. ADNOC, on behalf of the Abu Dhabi Government, will retain a 60% shareholding in the new concession areas.

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

"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. 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," H.E. Dr Al Jaber added.

Interest in the new concession areas is being driven by ADNOC's track-record of successful long-term relationships with its partners; the stable investment climate in the UAE; the UAE's leading low production costs and its globally-recognized record on health safety and protection of the environment.

Following ADNOC's 2016 announcement to consolidate the offshore operations of ADMA-OPCO and the Zakum Development Company (ZADCO), the new ADMA concessions and the existing Upper Zakum concession, operated by ZADCO, will be operated by the new integrated offshore company, capitalizing on operational synergies and enhanced performance. The consolidation of the two companies is due to be completed before the end of the year.

As ADNOC looks to boost oil production capacity to 3.5m bpd in 2018, offshore development is a strategic focus of the company. 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 1.0 million barrels per day by 2021.

ADNOC has adopted a progressive approach to delivering its future growth through its 2030 strategy, which aims to ensure a more profitable upstream business, a more valuable downstream business and an economic and sustainable supply of gas. In upstream, ADNOC is adapting to the evolving market environment by maximizing operational efficiencies, reducing costs and increasing crude oil production capacity to 3.5m bpd in 2018. In its gas business, ADNOC will develop a variety of natural gas sources, including tapping into gas caps and undeveloped deep and sour gas reserves. While in downstream, ADNOC aims to stretch the margin of each refined barrel of oil and expand petrochemical production from 4.5 to 11.4 mtpa by 2025. It will develop new, high-value products to meet growing demand and increase refining capacity to create new revenue streams.

Existing shareholders in ADMA-OPCO are BP (14.67%), Total (13.33%) and JODCO (12%). The international shareholders in ZADCO are ExxonMobil (28%) and JODCO (12%). The Abu Dhabi Government, through ADNOC, has a 60% interest in both operating companies.

About ADNOC 

ADNOC is a major diversified group of energy and petrochemical companies that produces around 3 million barrels of oil and 9.8 billion cubic feet of raw gas a day. Its integrated upstream, midstream and downstream activities are carried out by 16 specialist subsidiary and joint venture companies.

To find out more visit: http://www.adnoc.ae .

For further information:
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Sharmilee Padhi
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+91-9873906441
Genesis Burson-Marsteller