Oil and Natural Gas Corp (ONGC) is acquiring up to 10 percent stake in Abu Dhabi National Oil Company (ADNOC)’s offshore oil concession, sources said in Abu Dhabi. ONGC would thus become the first firm to secure a stake in the new concession. The value of the deal has been put at $600 million. The deal coincides with the visit of Prime Minister Narendra Modi to the UAE. A total of nine agreements were signed between India and the UAE during the prime minister’s visit.
ONGC is acquiring the stake leading a consortium of Indian petroleum companies, which include Indian Oil Corporation and Bharat Petro Resources Ltd, an upstream arm of refiner Bharat Petroleum Corp, sources said..
ADNOC had said last year that it would split its ADMA-OPCO offshore oil concession into two or more areas with new terms to unlock greater value and increase opportunities for partnerships.
The existing ADMA-OPCO concession, in which ADNOC has a 60 per cent stake that it will retain, is due to expire in March. It produces around 7 lakh barrels per day (bpd)of oil and is projected to have a capacity of about 10 lakh bpd by 2021.