Adnoc inks pact with CNPC to expand ties
Abu Dhabi National Oil Company (Adnoc) has signed a framework agreement, with the China National Petroleum Corporation (CNPC) covering various areas of potential collaboration in offshore and the sour gas development projects.
The agreement covers discussions between the two companies on possible CNPC participation in the Lower Zakum, Umm Shaif and Nasr concession areas and the Bab, Bu Hasa, Ghasha and Hail sour gas development projects, as well as other related projects.
In February, Adnoc signed an agreement with CNPC, awarding it an 8 per cent interest in Abu Dhabi’s onshore oil concession, operated by Adnoc Onshore. The agreement has a term of 40 years, backdated to January 1, 2015.
“We are keen to work with partners who can share technology and capital, enable market access. Equally, we want partners who can deploy world-class engineering solutions for our mutual benefit, ultimately enabling us to drive a more profitable upstream business and strong returns to Abu Dhabi and the wider UAE,” said Adnoc CEO Sultan Ahmad Al Jaber in a statement.
CNPC is China’s largest oil and gas producer and supplier. rench energy giant Total expressed optimism that they would be part of Adnoc’s offshore concession that will expire in March next year.
Currently Total has a 13.33 per cent stake in the offshore oil concession operated by the Abu Dhabi Marine Operating Company (Adma-Opco). BP and Japan Oil Development Company (Jodco) are the other companies in the concession with Adnoc holding a majority stake of 60 per cent.
Speaking to Gulf News in an interview, Hatem Nuseibeh, President of Total, exploration and production and group representative in the UAE said they have a good relationship with Adnoc and understand their needs well.
“We are discussing with Adnoc for a quite a while now on offshore concession. There is a competition and I am hopeful of good results,” Nuseibah said.
There are also other companies which are eyeing a stake in the offshore concession including companies from Japan, India, Norway, Germany, among others. Adnoc earlier this year said is in advanced discussions it with more than a dozen potential partners in awarding an offshore oil concession, comprising a mix of the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot fields that produce around 700,000 barrels a day of oil and is expected to have a production capacity of about 1.0 million barrels per day by 2021. Indian companies are eyeing a stake in Abu Dhabi’s offshore concession that will expire next year.
Amar Nath, joint secretary in India’s ministry of petroleum and natural gas, said in Abu Dhabi yesterday that a consortium of companies led by government owned ONGC Videsh has bid for the offshore concession. “Negotiations are going on. We are waiting for the results,” said Nath. He expressed confidence on the capabilities of Indian companies to win the concession.