Abu Dhabi still in talks for onshore oil joint venture

09 August 2016

National oil company is looking for international partners to take 22 per cent of Adco

Abu Dhabi National Oil Company (Adnoc) is still in discussions with potential partners to take the remaining 22 per cent interest in its onshore oil production concession, according to a company spokesperson.

The state-owned oil producer is looking for international partners to take a total 40 per cent of Abu Dhabi Company for Onshore Petroleum Operations (Adco), and signed contracts with three companies for 18 per cent in the first half of 2015.

“Adnoc is in discussions with several potential partners for the remaining 22 per cent of the onshore Adco concession,” an Adnoc spokesperson told MEED. “We are keen to work with all those who value long-term collaboration aimed at delivering benefits for both parties.”

International oil companies (IOCs) submitted bids for the Adco tender before the previous concession expired in January 2014. Last year, Adnoc awarded a 10 per cent stake in the concession to French oil major Total. Japan-based Inpex entered the joint venture with a 5 per cent interest, and South Korea’s GS Energy took a 3 per cent share.

Several more IOCs, including the UK’s BP and UK/Dutch Shell, submitted bids when the concession was tendered, but it is unclear how close Adnoc is to awarding the remaining 22 per cent.

In May, Adco appointed Saif Ahmed al-Ghafli as its new CEO as part of a reshuffle of the leadership of Adnoc and several of its operating companies.

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