• 4 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 13 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 15 minutes Iran in the world market
  • 18 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 37 mins Trump Will Win In 2020 And Beyond..?
  • 49 mins Never Bring A Rapier To A Gun Fight
  • 18 mins Bahrain - U.S.: Signed Deal To Buy Patriot Missiles
  • 17 hours USAvChina.com
  • 1 min USA Wants Iran War -- Shooty Shooty More
  • 8 hours Lest We Forget... A Brief Timeline of China's Modern History
  • 4 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 hours Democrats and Gun Views
  • 12 hours Visualizing US Oil & Gas Production (Through May 2019)
  • 2 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???

Total Inks Two 40-Year Oil Concessions In UAE

Total

French Total has signed two 40-year concessions worth a combined US$1.45-billion with the Abu Dhabi National Oil Company, or Adnoc. The concessions are for 20 percent in the Umm Shaif and Nasr concession and for 5 percent in the Lower Zakum concession—both offshore.

The concessions will add 80,000 barrels daily to Total’s overall production.

Total also extended its concession of the Abu Al Bu Koosh field by three years. The French company has a 100-percent stake in the field.

Umm Shaif and Nasser, and Lower Zakum were part of a larger concession dubbed ADMA-OPCO. Adnoc decided to break this concession into three smaller ones, including Lower Zakum, Umm Shaif and Nasr, and Umm Lulu and Al Razboot. The company put them up for grabs as the current concessions had either already expired in February or were due to expire this month.

Before Total, an Indian consortium including the state giant ONGC snapped up 10 percent in Lower Zakum worth US$600 million. The acquisition was notable in that it was the first foreign oil concession purchase by Indian companies in the UAE.

The fields making up the ADMA-OPCO concession produce around 700,000 bpd, but their capacity is on track to be expanded to 1 million bpd over the next three years. Adnoc is now looking to award another 10 percent in Lower Zakum, retaining 60 percent in the concession. More bidders are also sought for the other two new concessions after the split of ADMA-OPCO.

Related: The Truth About Aramco’s $2 Trillion Valuation

The UAE has proven oil reserves of 97.8 billion barrels and is tasked with producing no more than 2.87 million bpd under the OPEC+ oil production cut agreement. Despite this quota, Adnoc has plans to boost its production capacity from the current 3.2 million bpd to 3.5 million bpd by the end of the year.

Besides Total and the ONGC-led consortium, the company has granted concessions to Exxon, BP, Shell, Inpex, CNPC, and Spanish Cepsa.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play