The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
ABU DHABI / WAM
The Abu Dhabi National Oil Company (ADNOC) announced that 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 maximise 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 percent shareholding in the new concession areas.
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,†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 recognised 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, capitalising 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.