ADCO produces hydrocarbon mainly from eleven oil fields; ADNOC owns 60% of ADCO.
A consortium of Indian companies led by ONGC Videsh (OVL) has bid to pick up undisclosed stakes in onshore assets operated by Abu Dhabi Company for Onshore Petroleum Operations Limited (ADCO). The Indian companies getting a pie of UAE assets is being discussed during petroleum minister Dharmendra Pradhan on-going visit to the Dubai.
“Had detailed discussion with oil minister of UAE; it is third meeting with him in a year; agreed on few concrete projects,” Pradhan tweeted on Tuesday. India also imports 16 million tonnes of crude oil from UAE, which is the sixth biggest source.
Other than OVL, firms in the consortium include Oil India, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL). “It’s (bid) for onshore fields of ADCO. Reserves are confidential and under negotiations,” a senior official privy to the talks told FE from Dubai.
At present, ADCO produces hydrocarbon mainly from eleven oil fields. Abu Dhabi National Oil Company (ADNOC) owns 60% of ADCO.
On April 3, Sultan Ahmed Al Jaber, the head of ADNOC, was quoted saying by the local media that door is still open to discuss the participation of other international players in the remaining 22% share in ADCO. Nine Asian and Western companies have bid for stakes in the ADCO concession after a deal with Western majors dating back to the 1970s expired in January 2014, Reuters reported on April 4.
The oil fields produce 1.6 million barrels per day (bpd) and have a target of 1.8 million from 2017, it said.
Earlier, ExxonMobil, Shell, Total and BP had each held 9.5% equity stakes in the former ADCO concession, says multiple media reports. One of the reports said that France’s Total paid $2.2 billion for a 10% stake and leadership of certain key fields including Bu Hasa, Sahil, Asab, Shah, Qusahwira and Mender fields. Japan’s Inpex and South Korea’s GS Energy are also reported to have bought 5% and 3%, respectively, stakes in ADCO assets.
On January 18, 2016, Bloomberg News reported that Royal Dutch Shell exited Bab project in Abu Dhabi as the decline in energy prices deepens.
Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan visited New Delhi in February, when Prime Minister Narendra Modi himself went to receive him at the airport. Industry watchers see new vigour and momentum to India-UAE ties during recent times. Modi called Al Nahyan his ‘special friend,’ and Pradhan is likely to translate the friendship into strong business relationship.
Source: The financial Express
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