Signing ceremony took place at the Abu Dhabi Louvre
The Abu Dhabi National Oil Company (ADNOC) has awarded French oil firm Total major stakes in two of Abu Dhabi’s new offshore concessions. As per the terms of the deal, Total has a 20% interest in the Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession.
The agreements, which have a term of 40 years and an effective date of March 9, 2018, were signed by Dr Sultan Ahmed Al Jaber, ADNOC’s group CEO and Patrick Pouyanné, chairman and CEO of Total.
According to a statement from ADNOC, the Umm Shaif and Nasr concession and the Lower Zakum concession have been created from the former Adma offshore concession, which Total has been a partner in since 1953. The concession has been divided into three separate areas with the aim of maximising commercial value, broadening the partner base, expanding technical expertise and enabling greater market access.
“For over 75 years Total has partnered with Abu Dhabi in the development of our oil and gas resources and has closely collaborated with ADNOC across various stages of our value chain. Today’s announcement marks an important step to further strengthen our value-adding partnership with one of the world’s largest integrated upstream and downstream companies,” said Dr Al Jaber.
Total contributed a participation fee of $1.15bn to enter the Umm Shaif and Nasr concession and a fee of $300m to enter the Lower Zakum concession. Both concessions are operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession partners.
Al Jaber added, “Total brings deep knowledge and understanding of Abu Dhabi’s offshore oil and gas fields, as well as specialist expertise and technology that will help accelerate the development of the giant Umm Shaif gas cap. Adnoc has recently seen encouraging results from the first gas cap production pilot well at Umm Shaif, which will play an important role in delivering our 2030 smart growth strategy and a sustainable and economic gas supply. At the same time, we both see tremendous opportunities, through this partnership, to create greater value and generate higher returns across our joint activities.”
Total is said to be one of ADNOC’s longest standing international partners, having first become active in Abu Dhabi’s oil and gas sector in 1939. According to a statement, Total collaborates with ADNOC across the value chain, from offshore and onshore exploration, development and production, to processing, products and shipping.
Pouyanné commented, “Today’s announcement marks a new chapter in Total’s long and successful partnership with Abu Dhabi and ADNOC. These agreements ensure Total secures long-term access to significant and competitive hydrocarbon resources that we already know very well. We are committed to working alongside ADNOC and the other concession partners, utilising our experience gained from the former Adma offshore concession, to fully realise the potential of both of these new concession areas.”