The Italian oil and gas group Eni has acquired stakes in two offshore oil and gas concessions in the United Arab Emirates (UAE) over a 40-year period for a total consideration of US$875m. The agreement includes a 5% interest in the Lower Zakum offshore oil field for US$575m and a 10% share in the oil, condensate and gas offshore fields of Umm Shaif and Nasr for US$300m. This agreement is a strategic landmark for Eni, which now gains access to additional offshore hydrocarbon reserves for a 40-year term.
The Lower Zakum field is located 65 km off the coast of Abu Dhabi and currently produces 400,000 bbl/d of crude oil; it has a target production of 450,000 bbl/d by 2025. The Umm Shaif and Nasr fields are located 135 km from the coast and have a target output of 460,000 bbl/d.
In February 2018, an Indian consortium led by ONGC Videsh Ltd (OVL) acquired a 10% stake in the Lower Zakum concession for a price of AED2.2bn (US$600m). National oil company ADNOC Offshore is the operator of both concessions with a 60% stake.