Abu Dhabi National Oil Co. (ADNOC) on Sunday stated that it has rewarded Spanish Cepsa firm a 20 percent share in a concession of two offshore oil fields in a deal worth $1.5 billion.
The 40-year deal focuses to double production at the emirate’s offshore fields of SARB and Umm Lulu to 215,000 barrels per day, state-owned ADNOC said in a statement.
The statment also mentioned that its subsidiary, ADNOC Offshore, will retain a 60 percent stake in the project while the remaining 20 percent will be awarded to another company.
Cepsa, a global oil and gas company, is wholly-owned by Abu Dhabi’s Mubadala Investment Company which has assets worth over $125 billion.
Sultan al-Jaber, CEO of ADNOC said, “This long-term agreement is a milestone in the development of Abu Dhabi’s integrated oil and gas sector and in the delivery of ADNOC’s 2030 smart growth strategy.”
Last week, ADNOC awarded a 10 percent stake in the offshore concession of Lower Zakum to an Indian consortium led by ONGC Videsh company for $600 million. ADNOC Offshore also kept a 60 percent stake in that concession, with plans to award the remaining 30 percent to a third company.
The focus is to more than double production at Lower Zakum to 450,000 bpd. The large majority of the United Arab Emirates’ crude oil reserves are located in Abu Dhabi — capital of the Gulf emirate.
Abu Dhabi in recent years has granted concessions to ExxonMobil, Total, BP, Shell and China’s CNPC, among others, as old concessions have expired. The new concessions have been offered at nearly half the duration of the old concessions — with ADNOC taking majority stake in the projects.
The national company focuses to increase the Abu Dhabi’s oil production capacity from 3.2 million barrels per day to 3.5 million by the end of 2018.
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