Participating interests in the two offshore concession agreements has been granted to the company
Two new 40-year concession agreements have been signed between Total, the Supreme Petroleum Council of the Emirate of Abu Dhabi (United Arab Emirates) and the Abu Dhabi National Oil Company (ADNOC), granting Total a 20% participating interest in the new Umm Shaif & Nasr concession and 5% in the Lower Zakum concession, for a total participation fee of 1.45 billion dollars, representing an access cost of around 1 dollar per barrel of reserves. A production of 80,000 barrels of oil per day in 2018will be granted to Total by these interests.
Counting for around 20% of Abu Dhabi production, Umm Shaif and Lower Zakum are two of the major fields offshore. Umm Shaif also contains a giant gas-cap, which is to be developed in the scope of the concession with a gas production target of 500 mmscfd. This is in addition to the huge fuel reserves and the potential to grow oil production beyond 450,000 barrels per day. ADNOC Offshore will be the operator of all concessions offshore Abu Dhabi, to which Total, will bring its expertise by providing personnel and carrying out studies, as a partner in the concessions.
“These agreements represent another major milestone in our long-standing partnership with Abu Dhabi and ADNOC that dates back to 1939. Following the signing of the ADNOC Onshore concession in 2015, they confirm our commitment to ADNOC for the next 40 years,” said Patrick Pouyanné, Chairman and CEO of Total. “With a 25% overall participating interest in two concessions, we are honored that ADNOC chose Total as its main partner on these offshore concessions that contain giant reserves with low technical costs and offer significant growth potential.”
Dr Sultan Ahmed Al Jaber, ADNOC Chief Executive Officer, said “For nearly 80 years, Total has partnered with Abu Dhabi in the development of our fuel resources and has closely collaborated with ADNOC across various stages of our value chain. Today’s announcement marks an important step to further strengthen our mutually beneficial and value-adding partnership with one of the world’s largest integrated upstream and downstream companies.”
Operated by Total with a 100% interest, for three more years, Total has also extended its concession with ADNOC in the offshore Abu Al Bu Koosh field, as part of this partnership. For almost 80 years, Total has been present in the United Arab Emirates and has built a strong presence, reflected by the size and diversity of its assets and partnerships. In 2017, the Group’s equity production in the Emirates was 290,000 boe/d. PWKD20032018