UAE’s ADNOC awards stake in offshore concession to Total

UAE's Abu Dhabi National Oil Company (ADNOC) on Sunday awarded a 20 percent stake in its offshore Umm Shaif and Nasr concession and a 5 percent interest in the Lower Zakum concession to French energy giant Total.

The stakes were awarded for a total participation fee of AED 5.3 billion ($1.44 billion), individually split into AED 4.2 billion ($1.15 billion) for the Umm Shaif and Nasr concession and AED 1.1 billion ($300 million) for the Lower Zakum concession, the company said in a statement on Sunday.

The 40-year concessions came into effect from March 9.

Total is the fourth largest global oil and gas company and produced 2.5 million barrels of oil per day last year.

Last month, ADNOC awarded a 10 percent interest each in offshore Lower Zakum concession to ONGC Videsh-led Indian consortium, and Japan’s Inpex Corporation, respectively.

In the same month, it awarded a 20 percent stake in its offshore SARB and Umm Lulu concession to Cepsa, a Spanish integrated oil and gas company, for a participation fee of AED 5.5 billion ($1.5 billion).

ADNOC is finalizing opportunities, with potential partners, for the remaining 10 percent of the available 40 percent stake in the Lower Zakum concession, and for the remaining 10 percent stake in the Umm Shaif and Nasr concession. It retains a 60 percent majority share in both concessions, the statement said.