The Abu Dhabi National Oil Company (ADNOC) has announced that the existing ADMA-OPCO concession will be split into two, or more, concessions with new terms when the current concession expires next March.
ADNOC said in a press statement that it is in advanced discussions with more than a dozen potential partners for the offshore concession, currently operated by the Abu Dhabi Marine Operating Company (ADMA-OPCO) that expires next March.
The decision to split the massive ADMA-OPCO is in an attempt by ADNOC to unlock greater value and increase partnership opportunities. The concession will be comprised of a mix of the Lower Zakum field, Umm Sha per cent shareholding in the new concession areas.
H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of ADNOC said: “We have received great interest in the concessions from both existing and potential new partners. Discussions are progressing well and companies have been drawn by our stable investment environment and ADNOC’s reliability as a partner, as well as the attractive and sustainable returns that will be generated.
“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. Our ideal partners should also be willing to invest across different parts of our value chain” H.E. Dr Al Jaber added.
Following ADNOC’s 2016 announcement to consolidate the offshore operations of ADMA-OPCO and the Zakum Development Company (ZADCO), the new ADMA concessions and the existing Upper Zakum concession, operated by ZADCO, will be operated by the new integrated offshore company, capitalising on operational synergies and enhanced performance. The consolidation of the two companies is due to be completed before the end of the year.
As ADNOC looks to boost oil production capacity to 3.5m bpd in 2018, offshore development is a strategic focus of the company. The existing concession area operated by ADMA-OPCO, which produces around 700,000 barrels a day of oil, is planned to have a production capacity of about 1 million barrels per day by 2021.
Existing shareholders in ADMA-OPCO are BP (14.67 per cent), Total (13.33 per cent) and JODCO (12 per cent). The international shareholders in ZADCO are ExxonMobil (28 per cent) and JODCO (12 per cent). The Abu Dhabi Government, through ADNOC, has a 60 per cent interest in both operating companies.