Italy’s Eni wins three con­ces­sions in Shar­jah

The National - News - - BUSINESS - DA­NIA SAADI

Ital­ian oil and gas com­pany Eni has won three con­ces­sions in Shar­jah’s first com­pet­i­tive bid, adding to the firm’s part­ner­ships in the UAE’s en­ergy in­dus­try.

State-owned Shar­jah Na­tional Oil Cor­po­ra­tion, which launched the bid­ding round last year, awarded Eni ar­eas A, B and C on­shore ex­plo­ration con­ces­sions, the com­pany said yes­ter­day. The value of the deal was not dis­closed nor was a time­line spec­i­fied for when the ex­plo­ration will be­gin.

“These agree­ments mark for Eni an­other ma­jor step to­wards an or­ganic growth in the UAE,” said Clau­dio Descalzi, chief ex­ec­u­tive of Eni. “To­day’s awards are a fur­ther con­fir­ma­tion of our will­ing­ness to root our pres­ence in the Mid­dle East by cre­at­ing long-term strate­gic part­ner­ships”.

Eni has been on a win­ning streak in Abu Dhabi and was awarded sev­eral deals as the emi­rate forges ahead with plans to boost oil and gas ca­pac­i­ties.

State-owned Abu Dhabi Na­tional Oil Com­pany said on Satur­day it awarded two off­shore ex­plo­ration blocks to a con­sor­tium led by Eni and PTT Ex­plo­ration and Pro­duc­tion Pub­lic Com­pany of Thai­land, in its first com­pet­i­tive bid round.

The con­sor­tium will in­vest at least Dh844 mil­lion to ex­plore and ap­praise the two blocks that cover a com­bined area of about 8,000 square kilo­me­tres. Un­der the agree­ment, Eni will op­er­ate the con­ces­sions, while both com­pa­nies will hold a 100 per cent stake dur­ing the ex­plo­ration pe­riod.

Shar­jah’s con­ces­sion A and C will cover an area of 437 square kilo­me­tres and 1,184 square kilo­me­tres re­spec­tively, with Eni act­ing as op­er­a­tor with a 75 per cent stake in the con­ces­sion and SNOC re­tain­ing the re­main­ing in­ter­est.

Con­ces­sion B will stretch over an area of 264 square kilo­me­tres, while SNOC will be the op­er­a­tor with a 50 per cent stake and Eni will hold the re­main­ing in­ter­est.

Last year, Eni won a num­ber of deals in Abu Dhabi, which is seek­ing to boost its crude pro­duc­tion ca­pac­ity to 5 mil­lion bar­rels of oil per day by 2030, from about 3 mil­lion bpd now. It is also boost­ing its gas pro­duc­tion ca­pac­ity as it seeks to be­come self-suf­fi­cient in the com­mod­ity and ul­ti­mately be­come a net ex­porter of it.

In 2018, Eni won a 10 per cent stake in the Umm Shaif and Nasr Off­shore con­ces­sion and a 5 per cent stake in the Lower Zakum con­ces­sion, mak­ing it the first Ital­ian com­pany to win such deals in Abu Dhabi’s oil and gas sec­tor. Eni also won last year a 25 per cent stake in the Ghasha ul­tra sour gas con­ces­sion.

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