Why is ADNOC consolidating offshore oil firms?
- ADNOC is combining ADMA-OPCO and ZADCO
- ADNOC holds 60 per cent stake in both offshore oil companies
- Other stake holders are BP, ExxonMobil, Japan Oil Development Company (JODCO) and Total
- Yaser Al Mazrouei, current chief executive officer of ADMA-OPCO, appointed as joint CEO of ADMA-OPCO and ZADCO
In a major development in the Middle East’s energy sector, Abu Dhabi National Oil Co (ADNOC) is planning to combine the operations of Abu Dhabi Marine Operating Co (ADMA-OPCO) and Zakum Development Co (ZADCO) into a single new company.
ADNOC said on Tuesday that the consolidation will create a more profitable upstream business for it and its partners, namely BP, ExxonMobil, Japan Oil Development Company (JODCO) and Total.
“The consolidation is expected to yield significant financial and operational benefits,” ADNOC said in a statement sent out to the media.
Dr Sultan Al Jaber, UAE Minister of State and CEO of the ADNOC Group said the new move is a “perfect example of how ADNOC is reshaping its upstream business to generate more value in today’s ever-evolving energy landscape.”
“The consolidation will facilitate enhanced operational performance, while providing strategic benefits for future growth and advanced technology integration. Importantly, it will unite our offshore experience, streamline governance and decision making, and give management a better line of sight through the company’s operations,” Dr Al Jaber added.
ADNOC said a steering committee will be formed to oversee the integration, which is projected to be concluded by early 2018.
As a part of the move, the oil major has appointed Yaser Al Mazrouei, current chief executive officer of ADMA-OPCO, as joint CEO of ADMA-OPCO and ZADCO.
The firm added that, once the integration of ADMA-OPCO and ZADCO is complete, the new offshore operating company will operate the associated offshore concessions.
“The existing concession rights of our partners in the concessions currently operated by ADMA-OPCO and ZADCO will not be affected by the consolidation. Looking ahead, ADNOC will continue to review and consider all options, and pursue partners for concessions expiring in 2018,” said Dr Al Jaber.
ADNOC has a 60 per cent share in ADMA-OPCO and the remaining shares are held by BP, JODCO and Total. In ZADCO, the state-run firm holds a 60 per cent stake, while the remaining shares are held by ExxonMobil and JODCO.