ABU DHABI: The Abu Dhabi National Oil Company (ADNOC) announced the signing of two historic agreements awarding Italy’s multinational oil and gas company Eni stakes in two of Abu Dhabi’s offshore concession areas. Eni joins an Indian consortium, led by ONGC Videsh, and Japan’s INPEX as stakeholders in the Lower Zakum concession.
The awards mark the first time an Italian energy company has been given concession rights in Abu Dhabi’soil and gas sector. Under the terms of the agreements, Eni has been awarded a 10% interest in the Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession.
ADNOC is finalizing opportunities, with potential partners, for the remaining 15% of the available 40% stake in the Lower Zakum concession, and for the remaining 30% stake in the Umm Shaif and Nasr concession. ADNOC retains a 60% majority share in both concessions
Eni contributed a participation fee of AED 2.1 billion (USÂ $575 million) to enter the Umm Shaif and Nasr concession and a fee of AED 1.1 billion (USÂ $300 million) to enter the Lower Zakum concession. Both concessions will be operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession partners.
The agreements, which have a term of 40 years, backdated to March 9, 2018, were signed by Dr. Sultan Ahmed Al Jaber, ADNOC Group Chief Executive Officer, and Claudio Descalzi, CEO of Eni.
The Umm Shaif and Nasr, and Lower Zakum concessions, along with the SARB and Umm Lulu concession areas, have been created from the former ADMA offshore concession, with the aim of maximising commercial value, broadening the partner base, expanding technical expertise, and enabling greater market access.
ADNOC is finalizing opportunities, with potential partners, for the remaining 15% of the available 40% stake in the Lower Zakum concession, and for the remaining 30% stake in the Umm Shaif and Nasr concession. ADNOC retains a 60% majority share in both concessions.
