When Was the Adnoc Onshore Original Concession Agreement Signed
The first concessions expired in 2014, and since then, ADNOC has signed new concession agreements with Total in January 2015, with Inpex in Japan in April 2015, with GS Energy in May 2015 and, most recently, with BP in December 2016. Adco hopes to increase production on the property to 1.8 million bpd by 2017. At the heart of the success of this initiative is the contribution of IOCs with the experience and technical skills to increase results. On January 29, 2015, Abu Dhabi National Oil Company (ADNOC) and TotalEnergies signed the abu Dhabi Company for Onshore Petroleum Operations Limited`s (ADCO) new concession agreement for the ADNOC onshore oil fields in the emirate of Abu Dhabi. BP: The last concession agreement gave BP a 10% stake in Adco, replacing the 9.5% concession contract it had held since the 1970s. BP paid the Abu Dhabi government as part of a share exchange that made Abu Dhabi one of the company`s largest shareholders. BP also became An Asset Leader of Bab Asset Group. Through its other stakes in Abu Dhabi, BP receives a net production of 95,000 bpd from the emirate. BP plans to increase 165,000 bpd after the deal, bringing total oil production in Abu Dhabi to 260,000 bpd in 2017. However, the expiration of Abu Dhabi`s oldest and largest concession agreement carries the risk that these oil companies will have no direct interest in Abu Dhabi`s onshore oil reserves. The first tanker to carry a cargo of crude oil from Abu Dhabi`s onshore fields was finally loaded on December 14, 1963.
In early 1979, responsibility for the operation of ADPC`s onshore oil fields was transferred to a new company, Adco, which was 60% owned by ADNOC and 40% by ADPC shareholders. The new concession will be operated by the Abu Dhabi Company for Onshore Petroleum Operations Limited (ADCO), a new operating company in which Total will hold a 10% interest. Total was also named asset leader for the Bu Hasa and Southeast divisions (Sahil, Asab, Shah, Qusahwira and Mender), which account for approximately two-thirds of ADCO`s production. TO FOLLOW: Once the agreement is reached with BP, the Supreme Petroleum Council will continue to evaluate the proposals with the ADNOC board in the hope of concluding negotiations on the remaining 12% stake in ADCO. The list of contenders has shrunk and ADNOC is expected to try to attract at least one Chinese partner as the two countries seek to deepen their trade relations. The state-owned China Petroleum Engineering and Construction Corporation, PetroChina`s parent company, tops the list of contenders. Other bidders include Shell, Statoil and an Indian consortium led by ONGC Videsh. Adco hopes to increase production on the property to 1.8 million bpd by 2017.
“We are particularly pleased that this consortium includes the four major national exploration and production companies fully focused on supporting ADNOC and the Emirate of Abu Dhabi in strengthening its leading position in the global energy sector. Following a successful commercial discovery during the exploration phase, the Consortium will be entitled to a production concession to develop and produce such commercial discoveries. ADNOC has the possibility to hold a 60% stake in the production phase of the concession. The duration of the production phase is 35 years from the start of the exploration phase and the block offers the potential to create significant value in the country for the UAE during the concession term. In addition to drilling exploration and evaluation holes, in the exploration phase, the consortium will exploit and contribute financially and technically to ADNOC`s mega-seismic mega-survey, which collects 3D seismic data in the block area. Data already collected on much of the block, combined with proximity to existing oil and gas fields, indicate that the property has promising potential. ADNOC launched Abu Dhabi`s second round of competing block tenders in 2019, offering a number of key onshore and offshore blocks on behalf of the Abu Dhabi government. The award of Offshore Block 5 to the Pakistani consortium concludes this second block tender, during which highly competitive proposals were submitted for the proposed geographical areas. Following ADNOC`s recent discoveries of 22 billion barrels of recoverable unconventional oil resources (STB) and 160 trillion standard cubic feet (SCF) of recoverable unconventional gas resources, it was decided not to grant an exploration license for Block 2 onshore. .