Abu Dhabi Company for Onshore Oil Operations (Adco) will continue to operate Abu Dhabis onshore oil fields after the expiry of its joint venture agreement in early January next year, according to its majority shareholder Abu Dhabi National Oil Company (Adnoc).
Adnoc is expected to receive bids from international oil companies (IOCs) vying to form a new joint venture by the end of October but is unlikely to form a new concession before the expiry deadline.
The 75-year onshore oil concession will expire early next year, however, Adco will continue its operation without disruption until the new concession is granted after a decision is taken on the new bids which will be submitted during this month, Adnoc said in a statement on the official Emirates News Agency (Wam) on 3 October.
Regardless of the bidding process and whether or not new partners have been selected immediately, the business operations of Adco, which manages assets worth $40bn, will continue as usual, the national oil company added.
Adco is a joint venture of Adnoc and IOCs BP, ExxonMobil, Shell, Total and Portugals Partex that produces 60 per cent of Abu Dhabis crude output and 80 per cent of the emirates gas output.
Adnoc said that a large number of IOCs are interested in submitting bids to partner Adnoc in a new onshore oil concession.
Last week Adnoc Director-General Abdulla Nasser al-Suwaidi said there was no deadline to form a new joint venture but it will not take a long time after the bids have been received.