India, Adnoc sign Dh2.2B offshore concession deal
marked a new chapter in the strategic and economic relationship between the UAE and India.
“This mutually beneficial partnership will help India meet its growing demand for energy and refined products, create opportunities for Adnoc to increase its market share in a key growth market, and build a solid foundation as Adnoc explores potential international investments, particularly focused on downstream opportunities.”
Al Jaber said the agreement demonstrated the confidence of the international market in Adnoc’s long term production targets and Adnoc’s strategy to maximise economic value and recovery from its offshore oil and gas resources.
“This is an attractive and strategic agreement for both parties that will deliver competitive returns and long term growth opportunities.”
The Indian consortium is made
This mutually beneficial partnership will help India meet its growing demand for energy and refined products, create opportunities for adnoc to increase its share in a key growth market
Dr Sultan bin Ahmad Sultan Al Jaber, CEO of Adnoc
up of ONGC’s wholly owned subsidiary ONGC Videsh, which has stakes in 39 oil and gas projects, in 18 countries; the Indian Oil Corporation, India’s largest commercial enterprise; encompassing the entire hydrocarbon value chain, and Bharat PetroResources, which has stakes in 23 oil and gas assets in seven countries.
Current production at the Lower Zakum field is about 400,000 barrels a day, and the plan is to increase the plateau target to 450,000 barrels a day by 2025, according to a statement from ONGC Videsh. The Indian win gives the country a direct stake in Middle Eastern barrels. India is the second-biggest buyer of UAE crude behind Japan.
Abdulfattah Sharaf, group general manager, chief executive officer of the UAE and, head of International, HSBC Bank Middle East Limited, said HSBC research shows that India is set to come the UAE’s most important trade partner by 2030 — initially at an annual import growth of 14 per cent until 2020, and then 11 per cent per year thereafter.
“The trade corridor is a key area of focus of HSBC and our customers, so any diplomatic and regulatory moves that makes it easier to do business between the countries and increase the flow of goods and services is to be welcomed.”
The deal enables Adnoc to tap demand in the world’s secondmost populous nation. The producer has said it received more than 10 bids from companies seeking to work on the fields.
Shankar said the agreement would lead to further opportunities for Indian oil and gas companies to participate in the UAE’s energy sector. “The agreement reflects the vision of the Honourable Prime Minister of India towards strengthening hydrocarbon linkages with the UAE on a win-win basis.”
Indian energy demand is forecast, by the International Energy Agency, to grow by more than any other country in the period to 2040, propelled by an economy that will grow to more than fivetimes its current size and by population growth that will make it the world’s most populous country.
Indian energy consumption is expected to more than double by 2040, accounting for 25 per cent of the rise in global energy in the same period, and the largest absolute growth in oil consumption. Today, India is 79 per cent dependent on imports to meet its crude oil needs, 8 per cent of which is supplied by the UAE.
Adnoc also signed another agreement with the Indian Strategic Petroleum Reserves Ltd to implement the strategic crude oil storage facility, in the southern Indian city of Mangalore. The partnership with ISPRL, an Indian governmentowned company mandated to store crude oil for strategic needs, covers the storage of 5.86 million barrels of Adnoc crude oil in underground facilities, at the Karnataka facility.
The oil storage facility will help ensure India’s energy security, as well as enable ADNOC to efficiently and competitively meet market demand in India and across the fast developing south east Asian economies. The decision to establish the strategic reserve was announced, in January 2017, during a visit to India by Sheikh Mohamed bin Zayed.
— issacjohn@khaleejtimes.com