Abu Dhabi’s ADNOC to split offshore oil concession

Abu Dhabi National Oil Company (ADNOC) on Monday said it is planning to split its Abu Dhabi Marine Operating Company (ADMA-OPCO) concession into two or more areas, with new terms, to unlock greater value and increase partnership opportunities.

The state-run oil firm said it is in advanced discussions with more than a dozen potential partners, who have expressed interest in the offshore concession that expires next March.

“The potential partners are a mix of existing concession holders in ADNOC’s offshore fields and new participants,” ADNOC said in a statement.

The new approach will deliver improved revenue streams and ensure smart growth, while enhancing performance and securing greater access for ADNOC’s products in key growth markets, the firm said.

The concession will be comprised of a mix of the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot (SARB) fields.

ADNOC will retain a 60 percent shareholding in the new concession areas.

The company said the offshore development is a strategic focus for it, as it aims to boost its oil production capacity to 3.5 million barrels per day (bpd) in 2018.

The existing concession area, operated by ADMA-OPCO, produces around 700,000 bpd, and ADNOC is looking to improve the production capacity to about 1 million bpd by 2021.