Abu Dhabi finalises $1.5bn offshore sale with Austria’s OMV

Abu Dhabi National Oil Company (ADNOC) has finalised the sale of a 20 per cent interest in two offshore oil fields to Austria’s OMV for $1.5bn.

The latest deal pushes total concession awards by ADNOC this year to $8bn after similar deals with France’s Total, Italy’s Eni, Spain’s Cepsa, an Indian consortium led by ONGC Videsh and Japan’s Inpex.

Read: Abu Dhabi awards offshore oil concessions to France’s total for $1.45bn

OMV confirmed Sunday’s deal earlier this month, saying it would acquire a 20 per cent interest in the concession for the offshore oilfields Satah Al Razboot and Umm Lulu as well as the associated infrastructure.

At the time it expressed plans to build up its Middle East operations to match the size of its Russian business.

“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,” said ADNOC group CEO Sultan Al Jaber.

Abu Dhabi state fund Mubadala owns around 25 per cent of OMV and fully owns another concession winner, Spain’s Cepsa.

Read: UAE’s ADNOC signs $1.5bn offshore concession deal with Spain’s Cepsa

ADNOC announced last year that it would split its ADMA-OPCO offshore concession into three areas – Lower Zakum, Umm Shaif and Nasr, and Sateh Al Razboot and Umm Lulu – with new terms to unlock greater value and increase opportunities for partnerships.

The company is maintaining a 60 per cent interest in all three fields.

It has been a particularly busy month for the state oil company after launching its first competitive exploration and production licensing round for six oil and gas blocks and a new oil trading business.

Read: ADNOC sets up oil trading business

Read: UAE’s ADNOC launches oil and gas exploration round