Statoil Among Firms Seeking Stakes in Abu Dhabi Offshore Blocks
(Bloomberg) -- Statoil ASA is among producers involved in discussions with the Abu Dhabi National Oil Co. about joining offshore production in the emirate, according to a Norwegian diplomatic dispatch.
“All the major oil companies, including Statoil, are positioning themselves for a cooperation with Adnoc in the offshore segment,” Norway’s embassy in Abu Dhabi wrote in a message to the Foreign Ministry in Oslo dated Aug. 17, which was obtained by Bloomberg through a freedom-of-information request.
The diplomatic wire made direct reference to an Aug. 7 statement from Adnoc in which Abu Dhabi’s state oil company said it was in “advanced discussions with potential partners” for an offshore oil concession that expires in March and will be split into several parts under new terms. Adnoc said at the time that more than a dozen companies were involved in talks, including existing concessionaires and new participants, without mentioning names. Existing international partners include Exxon Mobil Corp., BP Plc and Total SA.
Statoil, which has had an office in Abu Dhabi since 2010 to look for business opportunities in the region, has an “ongoing dialog” with Adnoc, spokesman Erik Haaland said by phone. He declined to comment on whether Statoil was involved in discussions over the offshore concessions.
“The Middle-East is a very interesting area for our industry, and one of the most resource-rich areas in the world,” Haaland said. “We’re looking at a broad range of opportunities.”
BP and Royal Dutch Shell Plc, Europe’s biggest oil company, declined to comment. Total and Exxon couldn’t immediately comment. Adnoc responded to a request for comment by referring to its Aug. 7 statement.
The existing offshore concession is currently operated by the Abu Dhabi Marine Operating Co., or ADMA-OPCO, which is 60 percent owned by Adnoc. Production capacity is planned to reach about 1 million barrels of oil a day by 2021, compared with 700,000 barrels currently.
Adnoc plans to merge ADMA-OPCO with the Zakum Development Co., or Zadco, of which it also owns 60 percent, by the end of the year. International shareholders in ADMA-OPCO are BP with 14.67 percent, Total with 13.33 percent and Japan Oil Development Co. with 12 percent. Exxon owns 28 percent of Zadco, while Jodco holds 12 percent.
The new concessions will include a mix of the Lower Zakum, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot fields, according to Adnoc’s Aug. 7 statement. Adnoc will retain a 60 percent stake in the new areas.
With assistance from Rakteem Katakey, Mahmoud Habboush and Francois de Beaupuy. To contact the reporter on this story: Mikael Holter in Oslo at email@example.com. To contact the editors responsible for this story: James Herron at firstname.lastname@example.org Dylan Griffiths, John Deane.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 1 Offshore Rigs
- Statoil Takes First Bite Of Solar Market With Brazilian Joint Venture (Oct 04)
- Statoil Charters Last of Largest Oil Tankers to Hold Crude for Asia Buyers (Sep 28)
- Statoil And Partners Plan Output Capacity Expansion At Troll Gas Field (Sep 26)
Company: Abu Dhabi National Oil Co. (ADNOC) more info
- Middle East Oil Producers Turn to Crude Trading to Boost Incomes (Sep 29)
- Statoil Among Firms Seeking Stakes in Abu Dhabi Offshore Blocks (Sep 25)
- Abu Dhabi's Adnoc Is Said to Consider IPO for Shipping Business (Sep 21)