ADNOC in talks for new offshore oil concession
The Abu Dhabi National Oil Company (ADNOC) is in advanced discussions with multiple potential partners who have shown interest in the offshore concession currently operated by the Abu Dhabi Marine Operating Company (ADMA-OPCO).
The licence is scheduled to expire in March next year.
All interested parties include existing concession holders in ADNOC’s offshore fields, as well as new participants.
The company recently revealed the expansion of its strategic partnership model with a focus on its 2030 growth strategy.
The existing ADMA-OPCO concession, which includes the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot (SARB) fields, will be divided into two or more concessions.
ADNOC will retain 60% shareholding in the new concession areas.
ADNOC Group CEO Dr Sultan Ahmed Al Jaber said: “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.”
Last year, the company announced plans to consolidate the offshore operations of ADMA-OPCO and the Zakum Development Company (ZADCO) to form a new integrated offshore company.
This company will operate the new ADMA concessions and the existing ZADCO operated Upper Zakum concession.
The consolidation is expected to be completed by the end of this year.
ADNOC noted that offshore development is a strategic focus of the company as it aims to increase oil production capacity to 3.5 million barrels per day (bpd) next year.
The existing ADMA-OPCO operated concession area is expected to have a production capacity of one million bpd from the current 700,000bpd by 2021.