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

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

The Abu Dhabi National Oil Company (ADNOC) revealed, today, it remains in sophisticated discussions with more than a dozen potential partners who have shared a considerable rate of interest in the offshore concession, currently run by the Abu Dhabi Marine Operating Company (ADMA-OPCO) that ends following March. The potential companions are a mix of existing concession holders in ADNOC's offshore areas and new participants.

The statement comes shortly after ADNOC revealed the development of its tactical partnership model, in addition to the active monitoring of its profile of assets. ADNOC's brand-new method, which builds on its versatile and enhanced running version in addition to its 2030 growth approach, will allow the company to unlock and take full advantage of worth from throughout the Group. The brand-new approach will supply improved earnings streams and ensure smart development, while likewise improving efficiency and safeguarding higher gain access to for ADNOC's products in key development markets.

The existing ADMA-OPCO giving in will be split into two, or more, giving ins with new terms to open greater value and rise partnership chances. The giving in will be comprised of a mix of the Lower Zakum area, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot (SARB) areas. ADNOC, in support of the Abu Dhabi government, will certainly keep a 60% shareholding in the new concession areas.

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group Chief Executive Officer of ADNOC claimed: "We have gotten fantastic passion in the concessions from both existing and potential new companions. Discussions are progressing well and companies have been attracted by our secure investment setting and ADNOC's dependability as a partner, along with the eye-catching and lasting returns that will be produced. "As part of ADNOC's new partnership strategy, we expect working with partners that will bring new and innovative thinking to the table. Partners who could demonstrate tangible value-add to our operations through technology, know-how, long term capital and market accessibility, along with a common commitment to own operational performance and effectiveness to deliver smart growth and solid monetary returns. Our perfect companions must additionally want to spend across various components of our worth chain" H.E. Dr Al Jaber included.

Interest in the new concession areas is being driven by ADNOC's track-record of effective long-term relationships with its companions; the secure investment environment in the UAE; the UAE's leading reduced production expenses and its globally recognized document on health safety and security and security of the setting.

Complying with ADNOC's 2016 news to combine the offshore procedures of ADMA-OPCO and the Zakum Development Company (ZADCO), the new ADMA giving ins and the existing Upper Zakum giving in, run by ZADCO, will be run by the new integrated overseas company, capitalizing on operational synergies and improved efficiency. The loan consolidation of the two firms results from be finished before the end of the year.

As ADNOC plannings to boost oil production ability to 3.5 m bpd in 2018, offshore advancement is a calculated emphasis of the company. The existing concession location operated by ADMA-OPCO, which produces around 700,000 barrels a day of oil, is prepared to have a production capacity of about 1.0 million barrels per day by 2021.

ADNOC has actually taken on a progressive strategy to providing its future growth through its 2030 approach, which intends to make certain an extra profitable upstream business, a better downstream business, and a financial and sustainable supply of gas. In upstream, ADNOC is adapting to the advancing market setting by taking full advantage of functional effectiveness, reducing costs and raising petroleum production capability to 3.5 m bpd in 2018. In its gas business, ADNOC will develop a selection of natural gas sources, including tapping into gas caps and primitive deep and sour gas reserves. While in downstream, ADNOC intends to extend the margin of each fine-tuned barrel of oil and broaden petrochemical production from 4.5 to 11.4 mtpa by 2025. It will certainly develop new, high-value products to fulfill growing need and increase refining capability to develop new earnings streams.

Existing shareholders in ADMA-OPCO are BP (14.67%), Complete (13.33%) and JODCO (12%). The international shareholders in ZADCO are ExxonMobil (28%) and JODCO (12%). The Abu Dhabi government, with ADNOC, has a 60% interest in both running firms.