ABU DHABI: Abu Dhabi National Oil Co. (ADNOC) said Sunday it has awarded the Spain-based Cepsa a 20 percent share in a concession of two offshore oil fields in a deal worth $1.5 billion.
The 40-year deal aims 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.
Its subsidiary, ADNOC Offshore, will retain a 60 percent stake in the project while the remaining 20 percent will be awarded to another company, the statement said.
Cepsa, a global oil and gas company, is wholly-owned by Abu Dhabi’s Mubadala Investment Company which has assets worth over $125 billion.
“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,” CEO of ADNOC Sultan Al-Jaber said.
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 retained a 60 percent stake in that concession, with plans to award the remaining 30 percent to a third company.
The aim is to more than double production at Lower Zakum to 450,000 bpd.
ONGC Videsh is the foreign investment arm of ONGC. Other members of the consortium are Indian Oil Corp. and Bharat Petro Resources Ltd, an upstream arm of refiner Bharat Petroleum Corp.
That deal marked the first time for Indian oil companies to take part in an Abu Dhabi oil and gas concession.
In August, ADNOC said it would split its ADMA-OPCO offshore concession into three areas — Lower Zakum, Umm Shaif and Nasr, and Sateh Al Razboot and Umm Lulu — with new terms to unlock greater value and increase opportunities for partnerships.
The vast majority of the UAE’s 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 stakes in the projects.
The national company aims 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.