Abu Dhabi National Oil Company (ADNOC) recently awarded Italian company Eni stakes in two of its offshore concession areas.
According to a press release, two agreements were signed in this regard and the signing was witnessed by H H Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces, and H E Paolo Gentiloni, Prime Minister of Italy.
The agreements, which are for a term of 40 years, were signed by Dr Sultan Ahmed Al Jaber, chief executive officer, ADNOC Group, and Claudio Descalzi, CEO of Eni.
The awards mark the first time an Italian energy company has been given concession rights in Abu Dhabi's oil and gas sector.
“Under the terms of the agreements, Eni has been awarded a 10 per cent interest in the Umm Shaif and Nasr concession and a 5 per cent interest in the Lower Zakum concession,”
Eni contributed a participation fee of AED2.1bn (US$575mn) to enter the Umm Shaif and Nasr concession and a fee of AED1.1bn (US$300mn) to enter the Lower Zakum concession. Both concessions will be operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession partners.
Jaber said, "These agreements underline the international market's confidence in ADNOC's long-term growth plans and the UAE's stable and reliable investment environment. They also broaden and diversify our partnership base while contributing experience, technology, capital and market access.
"Our partnership with Eni and other concession partners will enable us to accelerate our growth, increase revenue and improve integration across the upstream value chain, as part of our ongoing transformation and build on the foundations that have been laid to deliver a more profitable upstream business.”
"With these agreements, ADNOC continues to leverage its 46-year legacy of successful energy partnerships, in support of its 2030 strategy. They will enhance its ability to capitalize on key trends that are driving growing energy demand and ensure ADNOC continues to deliver long-term, robust and sustainable returns for the nation's benefit," Jaber said.
Descalzi said, "Eni is committed to apply its experience in the development and production of world-class oil and gas resources, as well as Eni's technology portfolio, in support of ADNOC's objectives to cost-effectively increase production capacity, efficiently manage the concessions' assets and sustain the plateau through targeted enhanced oil recovery programs, at competitive cost. Eni also believes further collaboration with ADNOC in the downstream would create synergies, bringing mutual benefits from capital, resources and knowledge sharing, and would create significant added value to ADNOC's refining assets."