Abu Dhabi ex­tends con­ces­sion at ma­jor oil field to boost out­put

The Daily Star (Lebanon) - - BUSINESS -

ABU DHABI: The Abu Dhabi Na­tional Oil Com­pany said Tues­day it had signed an agree­ment with U.S. and Ja­panese oil firms to ex­tend their con­ces­sions and boost out­put at the emi­rate’s big­gest oil field.

AD­NOC said in a state­ment that it signed the agree­ment with U.S. gi­ant ExxonMo­bil and Ja­pan’s IN­PEX to raise out­put at the Up­per Zakum off­shore field by around 350,000 bar­rels per day to 1 mil­lion bpd by 2024.

The agree­ment ex­tended the con­ces­sion of the two com­pa­nies by a decade to end by 2051.

Lo­cated 83 kilo­me­ters north­west of Abu Dhabi, Up­per Zakum is the world’s fourth-largest oil field and the sec­ond-largest off­shore, con­tain­ing al­most half of the United Arab Emi­rates’ proven re­serves – nearly 100 bil­lion bar­rels.

“This agree­ment is an­other mile­stone in our ef­forts to forge part­ner­ships that bring tech­nol­ogy, ex­per­tise and cap­i­tal aimed at de­liv­er­ing greater eco­nomic value and lev­els of re­cov­ery from our re­sources,” AD­NOC CEO Sul­tan al-Jaber said.

The agree­ment is part of ef­forts by AD­NOC to push the United Arab Emi­rates’ pro­duc­tion ca­pac­ity to 3.5 mil­lion bpd from about 3.2 mil­lion bpd cur­rently.

Ja­pan’s IN­PEX be­gan the part­ner­ship with AD­NOC to de­velop Up­per Zakum in 1978.

They were joined by ExxonMo­bil in 2006.

No fi­nan­cial de­tails were given for the agree­ment but the on­go­ing project is es­ti­mated to cost around $10 bil­lion. AD­NOC has 60 per­cent of the con­ces­sion, ExxonMo­bil 28 per­cent and IN­PEX 12 per­cent. AD­NOC Tues­day also signed an agree­ment with a sub­sidiary of China Na­tional Petroleum Co. to raise the on­shore Bab field’s pro­duc­tion by 30,000 bpd to 450,000 bpd by 2020.

AD­NOC said Mon­day that it will float a mi­nor­ity stake in its petrol sta­tion sub­sidiary in the first pri­va­ti­za­tion of the to­tally state-owned oil sec­tor. –

“This agree­ment is an­other mile­stone,” Jaber said.

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