Officials signing the agreement. Credit: Abu Dhabi National Oil Company.

A consortium of Indian companies that involves ONGC Videsh, Bharat PetroResources (BPRL) and Indian Oil (IOCL) has signed an agreement to acquire a 10% participating interest in the Adnoc Group’s offshore lower zakum concession in the United Arab Emirates for AED2.2bn ($600m).

The agreement is valid for 40 years until 2057 and follows a growing demand for energy in India.

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Following the sale, Adnoc will retain a 60% of the participating interest and pursue a sale of the remaining 30% interest to other international oil firms.

India Prime Minister Narendra Modi said: “The Adnoc offshore concession in favour of the Indian consortium has taken our bilateral engagement in the oil and gas sector to a new level, which befits the comprehensive strategic partnership between India and UAE.”

The field stake sale is aimed at maximising commercial value, expanding technical expertise and enabling greater market access.

“This mutually beneficial partnership will help India meet its growing demand for energy and refined product.”

Adnoc Group CEO Dr Sultan Ahmed Al Jaber said: “This mutually beneficial partnership will help India meet its growing demand for energy and refined products, create opportunities for Adnoc to increase its market share in a key growth market, and build a solid foundation as Adnoc explores potential international investments, particularly focused on downstream opportunities.”

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Adnoc has also reached an agreement with the Indian Strategic Petroleum Reserves (ISPRL) to implement the strategic crude oil storage facility in the southern Indian city of Mangalore.

Under the partnership, ISPRL will store 5.86 million barrels of Adnoc crude oil in underground facilities at the facility.

The agreement is intended to meet India’s energy security and ensure Adnoc meets market demand in India.