Adnoc awards $1.45bn oil concession to Total

ABU DHABI / WAM

The Abu Dhabi National Oil Company (Adnoc) on Sunday signed agreements with Total of France, awarding them stakes in two of Abu Dhabi’s new offshore concessions.
Under the agreements, which were signed at the Abu Dhabi Louvre, Total has been awarded a 20 percent interest in the Umm Shaif and Nasr concession and a 5 percent interest in the Lower Zakum concession.
Total is Adnoc’s largest and one of its longest international partners, active in Abu Dhabi’s oil and gas sector since 1939. Today, the French super-major collaborates with Adnoc across the value chain, from offshore and onshore exploration, development and production, to processing, products and shipping.
Total contributed a participation fee of AED4.2 billion ($1.15 billion) to enter the Umm Shaif and Nasr concession and a fee of AED1.1 billion ($300 million) to enter the Lower Zakum concession. Both concessions are operated by Adnoc offshore, a subsidiary of Adnoc, on behalf of all concession partners. The agreements, which have a term of 40 years and an effective date of March 9, 2018, were signed by Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and Adnoc Group CEO, and Patrick Pouyanne, Chairman and CEO of Total.
Dr Al Jaber said, “For over 75 years Total has partnered with Abu Dhabi in the development of our oil and gas resources and has closely collaborated with Adnoc across various stages of our value chain. Today’s announcement marks an important step to further strengthen our value-adding partnership with one of the world’s largest integrated upstream and downstream companies.
Total brings deep knowledge and understanding of Abu Dhabi’s offshore oil and gas fields, as well as specialist expertise and technology that will help accelerate the development of the giant Umm Shaif gas cap. Adnoc has recently seen encouraging results from the first gas cap production pilot well at Umm Shaif, which will play an important role in delivering our 2030 smart growth strategy and a sustainable and economic gas supply. At the same time, we both see tremendous opportunities, through this partnership, to create greater value and generate higher returns across our joint activities.”
Pouyanne said, “Today’s announcement marks a new chapter in Total’s long and successful partnership with Abu Dhabi and Adnoc. These agreements ensure Total secures long-term access to significant and competitive hydrocarbon resources that we already know very well. We are committed to working alongside Adnoc and the other concession partners, utilising our experience gained from the former ADMA offshore concession, to fully realise the potential of both of these new concession areas.”