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.
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."