UAE to tender oil concession renewal

19 January 2012

Adco concession agreement expires in 2014

State-owned Abu Dhabi National Oil Company (Adnoc) will tender oil concessions for its joint venture, Abu Dhabi Company for Onshore Oil Operations (Adco), which are due for renewal in 2014.

“Adco concessions will be put to bidding because companies will be screened and those firms that meet the minimum requirements defined would be invited to bid,” Abdulla al-Suwaidi, Adnoc’s director-general said on 16 January, according to Reuters news agency.

“Of course later any company that submits the best offer technically and on price, (this) company or companies will be chosen,” said Al-Suwaidi.

Abu Dhabi’s Supreme Petroleum Council (SPC) is in the final stages of evaluating international oil firms and it also considering whether to tender the concessions whole or in three or four smaller units.

The US’ Exxonmobil is one of a number of international oil companies, which hold a 75-year concession agreement in Adco for six main onshore fields until 2014 (MEED 7:12:11).

Adnoc holds a 60 per cent stake, along with Exxonmobil, UK/Dutch Shell Group, France’s Total, the UK’s BP and Portugal’s Partex Oil & Gas hold the remaining 40 per cent.

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