OMV and ADNOC sign a new offshore concession agreement

OMV ADNOCDuring the signing ceremony. (Image source: OMV)OMV, the Vienna-based global integrated oil and gas company, has signed an agreement for the award of a 20 per cent stake in Abu Dhabi’s SARB and Umm Lulu concessions

The agreed participation fee amounts to US$1.5bn and the duration of the contract is 40 years.

The SARB and Umm Lulu concession award to OMV is in line with ADNOC’s strategy to maximise returns from its resources, expand its downstream business and retain value for the UAE.

OMV’s share of the reserves, for the period of the concession agreement, would amount to approximately 450 mmbbl oil for the two main fields, with upside potentials from the satellite fields Bin Nasher and Al Bateel. OMV’s capital expenditures over the contract term are estimated to amount to approximately US$2bn, thereof approximately US$150mn will be spent per annum during the first five years.

Dr Rainer Seele, chairman of the executive board and CEO of OMV, said, “The offshore concession award is an important milestone in OMV’s delivery on strategy 2025, as we expand our footprint in one of the world’s leading oil and gas hubs. We are confident that our technological expertise will contribute to value creation and profitable growth, for all partners involved.”

The ADMA-OPCO concession has been divided into three separate concessions in order to maximise commercial value, broaden ADNOC’s partner base, expand technical expertise, and enable greater market access.

“The expansion of the global economy and increasing demand for oil, refined products and petrochemicals, provide us with new opportunities to create value across our upstream and downstream business. To seize these opportunities, we will work closely with OMV, and our other partners to further optimize operational efficiencies, enhance performance, and capture future growth opportunities,” commented Dr Sultan Ahmed Al Jaber, the UAE minister of state and CEO of ADNOC Group.

Recently, ADNOC announced launches bidding round of six new oil and gas blocks, both offshore and onshore, to unlock new oil and gas opportunities in the Middle East and maximise hydrocarbon production the region.

In March 2018, the company awarded stakes in two of Abu Dhabi’s offshore concession areas to China National Petroleum Corporation (CNPC).

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