Bids have been placed by major global energy players for stakes in Abu Dhabi’s onshore oil fields, capable of producing 1.6 million barrels per day.
Based on previous partnerships, Royal Dutch Shell, BP and Total have already submitted bids to gain a stake, which will be reviewed by the Abu Dhabi Company for Onshore Oil Operations (ADCO).
Interestingly, however, US-based petroleum giants ExxonMobil have reportedly decided against renewing their share in the onshore oil initiative.
In the 1970s, when the newly formed UAE began to thoroughly explore its onshore crude potential, the above mentioned international firms, including ExxonMobil, acquired a 9.5 per cent stake in ADCO, with Portugal’s Partex gaining a 2 per cent share and Abu Dhabi’s state-owned Abu Dhabi National Oil Company (ADNOC) owning the rest. However, earlier this year the agreements had expired and therefore ADCO will have until 2015 to name its new partners.
Abu Dhabi is currently undergoing an expansion regarding oil production, with aims to increase output from 2.7 million bpd, across both onshore and offshore facilities, to a record 3.5 million bpd by 2017.
Whilst siding with its previous Western partners may seem the obvious choice for now, China’s National Petroleum Corp.(CNPC), Japan’s Inpex and Korea National Oil Corp are all said to have made fresh bids, with Russia’s Rosneft expected to follow suit, according to sources.
As such, choosing suitable strategic options will be a carefully considered process.
Thursday, July 24- 2014 @ 12:02 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.