Gulf Oil and Gas accountACCOUNT

Abu Dhabi Casts Wider Net for Oil Field Bids

Source: WSJ 3/8/2013, Location: Middle East

Share |
Abu Dhabi National Oil Co., or Adnoc, has invited several international oil firms, in addition to existing partners, to bid for the renewal of a shared license to operate some of the emirate's largest onshore oil fields, two people familiar with the matter said.

U.S.-based firms Chevron Corp. and Occidental Petroleum; China National Petroleum Corp, or CNPC, Japan's Inpex Corp, Korea National Oil Corp, or KNOC, Norway's Statoil ASA and Russia's OAO Rosneft were among the new companies invited, the people said.

The 75-year-old concession, which expires at the end of the year, produces 1.5 million barrels of oil a day—more than half the United Arab Emirates' crude production and around 1.7% of global oil production. It is one of the few major oil-producing areas in the Persian Gulf where international companies are able to hold an ownership stake.

Without an invitation, the companies would not have an opportunity to be involved in the concession as the emirate doesn't open the competition to any bidder.

State-owned Adnoc holds a 60% controlling stake in Abu Dhabi Co. for Onshore Oil Operations, BILDCO.AD -8.77% or Adco, which operates the concession. The remaining 40% is shared between BP BP.LN +0.29% PLC, Exxon Mobil Corp., XOM -0.22% Royal Dutch Shell RDSB.LN +0.18% PLC, Total SA FP.FR -0.58% and Partex Oil & Gas.

Adnoc has already invited all existing partners except for Partex to reapply for the concession.

In addition, "Adnoc is interested in getting new partners in the concession and therefore they sent invitation letters to several companies back in June," a person close to the matter said. "More people could be allowed later but it is a good way to see who has the right criteria to bid."

Chevron, Statoil, Rosneft, and CNPC would not say whether they had received the invitations. KNOC said it has submitted documents for the preliminary qualification review and is waiting to hear back from Adnoc. An Inpex spokesman would not comment on any specific project but said that the company intends to expand its presence in Abu Dhabi. Occidental Petroleum didn't respond to requests for comment.

Adnoc has already proposed to Abu Dhabi's highest oil authority, the Supreme Petroleum Council, a one-year extension to the concession, saying the next 10 months aren't enough time to complete a new deal with international partners. The council is expected to approve the extension soon, one of the people said.

The Adco concession, which covers six main deposits, is the largest in the country. The U.A.E, which includes Abu Dhabi, plans to increase its output capacity to 3.5 million barrels a day by 2017, from its current estimated maximum output capacity of around 2.85 million barrels a day.

Acquisitions and Divestitures News in United Arab Emirates >>

United States >>  2/15/2018 - Oil Search advises that its acquisition of a 25.5% interest in the Pikka Unit and adjacent exploration acreage and a 37.5% interest in the Horseshoe B...
Australia >>  2/14/2018 - Woodside Petroleum said it would raise A$2.5 billion ($1.96 billion) from shareholders to fund the purchase of ExxonMobil Corp’s stake in the Scarboro...

Indonesia >>  2/14/2018 - Lion Energy, an ASX listed oil & gas exploration & production company focused on Indonesia, has advised it is undertaking a strategic review of its oi...
United States >>  2/14/2018 - LINN Energy, Inc. (LNGG) announces that it has signed a definitive agreement to sell its interest in conventional properties located in west Texas to ...

Australia >>  2/12/2018 - Carnarvon Petroleum has informed shareholders that it has been awarded the AC/P63 permit within the Southern Vulcan Sub-basin, on Western Australia’s ...
Kuwait >>  2/12/2018 - Kuwait Energy plc signed Block 9, Iraq Farm-out Agreement with Dragon Oil (a wholly-owned subsidiary of Emirates National Oil Company Ltd, the nationa...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United Arab Emirates Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

More News

 

Oil & Gas Companies in United Arab Emirates >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.