United Arab Emirates's oil group Abu Dhabi National Oil Co (ADNOC) plans to merge two of its offshore subsidiaries, namely Abu Dhabi Marine Operating Co (ADMA-OPCO) and Zakum Development Co (ZADCO), into a new entity, in order to capitalise on synergies, improve operational efficiency, maximise value and reduce costs, in a context of low oil prices.
ADNOC owns 60% of ADMA-OPCO (in partnership with BP, JODCO, and Total) and 60% in ZADCO (in partnership with ExxonMobil and JODCO). The joint venture partners will assess the integration and ADNOC will consider all options and pursue partners for concessions expiring in 2018.
ADMA-OPCO and ZADCO currently produce around 1.2 mb/d off the Abu Dhabi coast and ADNOC aims to raise its production by 33% to 1.6 mb/d by 2017-2018. ADNOC plans to invest more than US$25bn in the next five years to boost offshore fields production. The United Arab Emirates currently produces about 3.2 mb/d and aims to reach 3.5 mb/d by 2017-2018.