Dubai: Abu Dhabi National Oil Company (Adnoc) is “keen to work with those who appreciate the value of long-term collaboration,” a senior executive said on Monday amid questions as to whether the state-oil company would award further stakes in a concession to develop the United Arab Emirates’ largest oilfields.
France’s Total, Japan’s Inpex Corp and South Korea’s GS Energy have won 40-year stakes in Abu Dhabi Company for Onshore Oil Operations (ADCO) to develop oilfields that produce 1.6 million barrels per day (bpd) and have a target of 1.8 million from 2017.
After the old concession expired, Adnoc, which had held a 60 per cent stake, took full-ownership of ADCO before awarding 10, five and three per cent stakes to Total, Inpex and GS Energy, respectively, leaving 22 per cent for other bids.
Adnoc said in April that the “door is still open” to “international players” for the remaining stake, however, there have been little indication since then as to whether there would be further awards.
“We must address longer term considerations beyond the effect of short-term cycle movements,” Abdul Munim Saif Al Kindy, Adnoc’s director of exploration development and production, said in an address at an energy conference in Dubai. “What will never change is our commitment to long-term relationships.”
Al Kindy did not specifically address the ADCO concession in his speech and company officials were not available at the conference to comment.
The ADCO concession attracted nine bids from Asian and Western companies after the old deal with Western majors dating back to the 1970s expired in January 2014. BP, ExxonMobil, Shell, and Total had each held 9.5 per cent in the old concession.
BP, Shell and Total each made bids on the new concession, while Exxon sat out. Other bids included from US firm Occidental Petroleum, Italy’s ENI, China National Petroleum Corp (CNPC), Norway’s Statoil and Korea National Oil Corp.
Al Kindy said partnerships were essential in the current market climate where oil prices have lost more than half their value since mid-2014 to trade at an average of around $43 a barrel this year. “We look forward to building on the legacy of Adnoc by establishing new and active partners,” he said.
