Abu Dhabi National Oil Company has awarded stakes in two offshore concessions to France’s total for Dhs5.3bn ($1.45bn), according to UAE state news agency WAM.
The company paid $1.15bn for 20 per cent of the Umm Shiaf and Nasr concession and $300m for 5 per cent of the Lower Zakum concession.
ADNOC also awarded stakes in both concessions to Italy’s Eni last week for $875m.
In both cases, the concession will be operated by ADNOC offshore under 40-year agreements backdated to March 9.
“For over 75 years Total has partnered with Abu Dhabi in the development of our oil and gas resources and has closely collaborated with ADNOC across various stages of our value chain,” said ADNOC Group CEO Sultan bin Ahmad Sultan Al Jaber.
“Today’s announcement marks an important step to further strengthen our value-adding partnership with one of the world’s largest integrated upstream and downstream companies.”
The agreements form part of a plan by ADNOC to make better use of its offshore resources by bringing in more international partners.
Under this strategy, the state oil company split the previous ADMA offshore concession Total had been a partner on since 1953 into three smaller parts.
ADNOC said Total’s expertise would help accelerate the development of the giant Umm Shaif gas cap after conducting its first production pilot. The company plans to process 500 million standard cubic feet of gas from the cap per day and 460,000 barrels per day of oil form the Umm Shaif and Nasr concession in total.
Other investors in the Lower Zakum segment include an Indian consortium led by ONGC Videsh and Japan’s Inpex.
The deal with Total means ADNOC still has 10 per cent of the Lower Zakum concession and 10 per cent of Umm Shaif and Nasr concession to award to international partners