Adnoc signs deal to award stakes to Total for $1.45bn

The Abu Dhabi National Oil Company (Adnoc) has signed agreements to award stakes in two of Abu Dhabi’s new offshore concessions to French exploration company Total for an aggregate sum of AED5.3bn ($1.45bn).

The concession agreements will see Total acquire a 20% participating interest in the Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession for a period of 40 years.

As a result of the deals, Total is set to add production of 80,000 barrels of oil per day this year.

Operated by Adnoc’s subsidiary ADNOC Offshore, the Umm Shaif and Lower Zakum concessions are located about 135km and 65km off the coast, respectively.

Adnoc group CEO Dr Sultan Ahmed Al Jaber said: “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.

“At the same time, we both see tremendous opportunities, through this partnership, to create greater value and generate higher returns across our joint activities.”

The development comes after Italy’s Eni signed a deal to acquire a 5% stake in the Lower Zakum and a 10% stake in the Umm Shaif and Nasr.

Apart from Total and Adnoc, other stakeholders in the Lower Zakum concession include an Indian consortium, led by ONGC Videsh, Japan’s INPEX, as well as Eni.