The oil and gas group Total has been awarded stakes in two oil and gas offshore producing concessions in the United Arab Emirates (UAE) by the state-run oil company Abu Dhabi National Oil Company (ADNOC) for a total participation fee of US$1.45bn, representing an access cost of approximately US$1/bbl of reserves. Total will acquire a 5% interest in the Lower Zakum concession for AED1.1bn (around US$300m) and a 20% stake in the Umm Shaif and Nasr block for AED4.2bn (US$1.15bn). Once the deal is complete, these assets will bring a production of 80,000 bbl/d to the company. The concession agreements have been signed for a 40-year period.
Earlier in March 2018, Eni acquired 5% interest in the Lower Zakum offshore oil field for US$575m and a 10% share in Umm Shaif and Nasr for US$300m, while an 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) in February 2018.
The Lower Zakum field came onstream in 1967 and 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.
Source: Total