The Abu Dhabi National Oil Company (ADNOC) has awarded Frances Total a stake in two offshore concessions to boost gas production, aimed at meeting domestic energy demands and cutting gas imports
Under the terms of the deal, Total paid a fee of US$1.15bn for 20 per cent interest in the Umm Shaif and Nasr concession and a fee of US$300mn for 5 per cent interest in the Lower Zakum concession.
A concession is an exploration grant given by a government, usually in exchange for a bonus, license fee and royalty or a production sharing deal.
ADNOC said that the Umm Shaif and Nasr concession has a crude production capacity of 460,000 bpd and that it plans to process 500 mmcfd of gas from Umm Shaif’s gas cap.
The state oil company said it is finalising partners for the remaining 10 per cent stake in each of the concessions.
