ADNOC weighs up partners to develop new offshore oil concession
The Abu Dhabi National Oil Company (ADNOC) is in advanced talks with multiple potential partners amid high interest in contracts for its new offshore oil concessions.
With the current license operated by Abu Dhabi Marine Operating Company (ADMA-OPCO) set to expire in March 2018, competition for the rights is heating up, with both existing partners and new entrants weighing in.
Current shareholders of ADMA-OPCO include BP, Total and JODCO, while ExxonMobil and JODCO are partners in Zakum Development Co. (ZADCO), whose offshore operations are set to be consolidated with ADMA-OPCO’s by the end of the year. ADNOC, owned by the Abu Dhabi government, has a majority 60% interest in both operating companies and will retain this share in the new concessions.
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The widespread appeal of the ADMA-OPCO oil concessions is driven by ADNOC’s favourable business conditions, offering a stable investment climate and low production costs.
The company recently revealed its new strategic partnership model would be driven by its ideas of expansion and its 2030 growth strategy, with the aim of maximising value from each and every barrel.
“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,” said ADNOC CEO Dr Sultan Ahmed Al Jaber.
“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.”
The company is looking at a fivefold boost in oil production to 3.5mn barrels daily by 2018. Existing concession areas currently produce around 700,000 barrels per day.