The US’ ExxonMobil hopes to secure changes in the terms for Abu Dhabi’s oil concessions which expire in 2014, according to the company’s chief executive officer.
Exxonmobil is one of a number of international oil companies, which hold a 75-year concession agreement in the Abu Dhabi Company for Onshore Oil Operations (Adco) joint venture for six main onshore fields until 2014.
“The concession structure and terms that served all parties well in the past are just no longer appropriate in today’s environment, both in terms of cost and prices,” said Rex Tillerson at the World Petroleum Congress in Doha.
State-owned Abu Dhabi National Oil Company (Adnoc) holds a 60 per cent stake in Adco. The other stake holders, Exxonmobil, UK-Dutch Shell, France’s Total, the UK’s BP and Portugal’s Partex Oil & Gas hold the remaining 40 per cent.
Concessions in Abu Dhabi’s offshore fields are operated by Abu Dhabi Marine Operating Company (Adma-Opco), owned by Adnoc, BP, Total and Japan Oil Development Company (Jodco), and Zakum Development Company (Zadco) with shares held by Exxonmobil and Jodco.
The three main Adnoc subsidiaries account for almost all the emirate’s crude output. Adco operates its onshore fields, while Adma-Opco is operator of the Umm Shaif and Lower Zakum fields. Zadco operates the Upper Zakum field and four smaller offshore fields.
Abu Dhabi’s Supreme Petroleum Council (SPC), which oversees the oil and gas sector, signed a new concession agreement with Japan-owned private offshore oil and gas developer, Abu Dhabi Oil Company (Adoc) in February this year (MEED 3:2:11).
Adoc is considered relatively minor however, producing only 24,000 barrels a day from three fields off the coast of Abu Dhabi; Mubarraz, Umm al-Anbar and Neewat al-Ghalan.