UAE’s ADNOC to split offshore oil concession

STATE-owned Abu Dhabi National Oil Co (ADNOC) has said it plans to split a large offshore oil concession, and is in advanced talks with more than a dozen potential partners.

The concession, which expires next March, is currently operated by the Abu Dhabi Marine Operating Company (ADMA-OPCO). ADNOC said it will be split into two or more concessions with new terms, in order to unlock greater value and increase partnership opportunities.

Sultan Ahmed Al Jaber, ADNOC's group chief executive, said the company is seeking innovative partners to provide technology, expertise, long-term capital and market access, as well as operational performance.

“Our ideal partners should also be willing to invest across different parts of our value chain,” he added.

ADNOC will, on behalf of the Abu Dhabi government, retain a 60% shareholding in the new concession areas.

The existing ADMA-OPCO concession produces around 700,000 bbl/d of oil and is projected to have a capacity of about 1m bbl/d by 2021.

Potential partners have not yet been named, but ADNOC has said there is interest from a mixture of existing partners from its offshore oilfields and new participants.

Sultan Al Jaber said: “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.”