Abu Dhabi National Oil Company (ADNOC) has proposed to extend an agreement on some of its largest onshore oilfields in order to give it more time to develop a new deal with international oil companies
The agreement, due to expire in January 2014, has been granted a one-year extension.
ADNOC holds a 60 per cent controlling stake in Abu Dhabi Company for Onshore Oil Operations (ADCO), which operates the 75-year-old concession, while the remaining 40 per cent is owned by BP, Exxon Mobil Corporation, Royal Dutch Shell, Total SA and Partex Oil & Gas.
An official said, “Abu Dhabi saw that the time left before the current concession expires is not enough to firm a new deal, especially that more companies are interested to participate and Adnoc wants a new structure.”
The new proposal by ADNOC would have to be approved by the Supreme Petroleum Council, emirate’s highest oil authority, the official added.
ADCO has the rights for six main deposits, making it the largest concession with capacity to produce about 1.5mn bopd.
Oil majors including Exxon, Shell, Total, BP and China National Petroleum Corporation received invitations last year to bid, according to an official.
The UAE plans to increase its output capacity to 3.5mn bopd by 2017 from its current estimated output capacity of around 2.85mn bopd.
