Abu Dhabi– State-owned Abu Dhabi National Oil Company (ADNOC) announced on Monday it is in advanced discussions with more than a dozen potential partners who have expressed a significant interest in the offshore concession, currently operated by the Abu Dhabi Marine Operating Company (ADMA-OPCO) that expires next March which dates back to 1953.
The current shareholders in Adma-Opco are BP with 14.67 per cent, Total with 13.33 per cent and Japan’s Jodco with 12 per cent. The Abu Dhabi Government, through Adnoc, has a 60 per cent holding and will retain it after the new concession.
The potential partners are a mix of existing concession holders in ADNOC’s offshore fields and new participants.
Recently, ADNOC unveiled the expansion of its strategic partnership model, as well as the active management of its portfolio of assets.
ADNOC’s new approach, which builds on its flexible and enhanced operating model as well as its 2030 growth strategy, will enable the company to unlock and maximize value from across the Group. It will deliver improved revenue streams and ensure smart growth, while also enhancing performance and securing greater access for ADNOC’s products in key growth markets.
ADNOC’s CEO Sultan Ahmed al-Jaber said in Monday’s statement that the company was looking for partners to provide technology, expertise, long-term capital and market access, as well as operational efficiency and a willingness to invest in its different parts.
“As part of ADNOC’s new partnership approach, we look forward to working with partners who will bring new and innovative thinking to the table. Partners who can demonstrate tangible value-add to our operations through technology, expertise, long term capital and market access, as well as a shared commitment to drive operational performance and efficiency to deliver smart growth and strong financial returns. Our ideal partners should also be willing to invest across different parts of our value chain” Jaber added.
As ADNOC looks to boost oil production capacity to 3.5m bpd in 2018, offshore development is a strategic focus of the company. Current ADMA-OPCO concession produces around 700,000 barrels per day of oil and is projected to have a capacity of about one million bpd by 2021.
In its gas business, ADNOC will develop a variety of natural gas sources, including tapping into gas caps and undeveloped deep and sour gas reserves. ADNOC aims to stretch the margin of each refined barrel of oil and expand petrochemical production from 4.5 to 11.4 mtpa by 2025.