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Austrian oil and gas group OMV said it will take a 20 per cent interest in two oilfields off the United Arab Emirates under a $1.5bn deal agreed with the Gulf state’s national oil company ADNOC.
Abu Dhabi National Oil Company (ADNOC), which generates almost all of the United Arab Emirates’ oil, is awarding new concessions to foreign investors in a bid to gain access to technology and funding and to secure buyers for its crude.
OMV and ADNOC agreed a year ago to evaluate joint opportunities, including the exchange of know-how in refining operations and cooperation on downstream technical and maintenance support.
OMV said on Thursday that 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.
The Austrian group wants to build up its Middle East operations to match the size of its Russian business and reduce its reliance on Russia, and said last month that it is ready to spend EUR10bn ($12bn) on acquisitions to expand overseas.
ADNOC aims to take full advantage of rising demand for higher value refined and petrochemical products, particularly in China and Asia and benefit from its partners’ experience.
It 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.
OMV said it expected to sign the deal with ADNOC at the end of this month.