Adnoc gives concession stake to OMV

COMPANY AWARDS 20% STAKE TO AUSTRIAN FIRM WHICH CONTRIBUTED $1.5B

Abu Dhabi National Oil Company (Adnoc) signed an agreement awarding Austrian firm OMV a 20 per cent stake in Abu Dhabi’s SARB and Umm Lulu offshore concession.

The signing of the deal, which has a term of 40 years from March 9, 2018 was witnessed by His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Sebastian Kurz, Chancellor of Austria, Adnoc said in a statement yesterday.

“With this deal, concession rights in offshore fields in Abu Dhabi have been awarded to a prestigious group of international companies with vast experience, strengthening the UAE’s partnerships that ensure a significant stake of its hydrocarbon resources in international markets for years to come,” said Shaikh Mohammad. “The agreement reaffirms the UAE’s firmly established stature in this vital sector.” OMV contributed a participation fee of $1.5 billion (Dh5.5 billion) to enter the concession. Adnoc retains a majority 60 per cent stake in the offshore concession that will be operated by Adnoc offshore.

New opportunities

“The expansion of the global economy and increasing demand for oil, refined products and petrochemicals, provide us with new opportunities to create value across our upstream and downstream business,” Dr Sultan Ahmad Al Jaber, Adnoc Group Chief Executive Officer said in a statement.

“To seize these opportunities, we will work closely with OMV, and our other partners to further optimise operational efficiencies, enhance performance, and capture future growth opportunities.”

“OMV’s strong track record in deploying advanced technologies to cost-effectively increase recovery rates from mature fields will help enable Adnoc to continue to be a reliable supplier of oil for decades to come.” OMV is Austria’s largest listed company and is partowned by a unit of Mubadala Investment Company.