ADNOC confirms OMV’s entry into two offshore field developments

Abu Dhabi National Oil Company (ADNOC) has awarded Austrian oil company OMV a 20% stake in the SARB and Umm Lulu offshore concession.

 

OMV joins Spain’s CEPSA as a shareholder in the offshore concession. The company paid US$1.5 billion to enter the concession, a sum which also takes account of previous investments made by ADNOC in the SARB field.

 

ADNOC Offshore will operate the concession, which runs for 40 years.

 

The two producing fields are Umm Lulu and Satah Al Razboot (SARB). Umm Lulu is 30 kilometres (18.6 miles) offshore Abu Dhabi, in shallow waters: early production started in the fourth quarter of 2016, and the field should build to plateau production early in the 2020s, delivering 20,000 b/d net to OMV.

 

Satah Al Razboot is also in shallow waters but 120 kilometres (74.6 miles) offshore. ADNOC anticipates first oil before year-end, with OMV netting more than 20,000 b/d during the plateau period, again in the early 2020s.

 

Johann Pleininger, OMV’s deputy chairman, said: “This acquisition is a step towards our strategic goal to double our reserves. It will substantially increase OMV’s reserve base by approximately 450 MMbbl, representing our share over the concession period.”

 

There is also upside potential from the satellite fields Bin Nasher and Al Batee.

 

OMV expects to spend around US$2 billion on capex during the contract term and around US$150 million annually during the first five years.

 

This agreement completes Abu Dhabi’s round of offshore concession awards, which has seen ADNOC bring on board more new companies with access to capital, technology, and expertise.

 

Collectively the offshore agreements concluded since the start of the year amount to US$7.92 billion in participation fees and secured markets for 40% of the UAE’s oil over the next 40 years.

 

The current ADMA offshore concession, which expired on the 8th March, has been split into three separate offshore concessions, all operated by ADNOC Offshore. The offshore concessions awarded are:

 

Concession NameADNOC SharePartner ShareTarget Production
OilGas
Lower Zakum60%10% – ONGC Videsh-led consortium

10% – INPEX

5% – Eni

5% – Total

10% – China National Petroleum Corporation

450,000 b/dNil
Umm Shaif and Nasr60%10% – Eni

20% – Total

10% China National Petroleum Corporation

460,000 b/d500 MMcf/d
SARB and Umm Lulu60%20% – OMV

20% – CEPSA

 

Source: Offshore Magazine