UAE: Oil & Gas Agreements Eni Acquires Stake in Two Offshore Oil & Gas Fields
With a total participation fee of about 875 million dollars, Eni has acquired a 5 % and 10 % stake in the Lower Zakum offshore oil field and Umm Shaif and Nasr offshore fields respectively.
Abu Dhabi/UAE – Eni has recently signed two Concession Agreements for the acquisition of a 5 % stake in the Lower Zakum offshore oil field and a 10 % stake in the oil, condensate and gas offshore fields of Umm Shaif and Nasr. The company has also offered a total participation fee of about 875 million dollars for a duration of 40 years.
The signing ceremony was attended by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and Deputy Supreme Commander of the United Arab Emirates Armed Forces, the Italian Prime Minister, Paolo Gentiloni, His Excellency Dr Sultan Ahmed Al Jaber, ADNOC Group Chief Executive Officer, and Eni’s Chief Executive Officer, Claudio Descalzi.
The agreements represent a strategic move for Eni gaining access to a country with hydrocarbons reserves among the largest in the world. Lower Zakum is located about 65 kilometers off the coast of Abu Dhabi. The discovery dates back to 1963 and production began in 1967. It has a target production of 450,000 barrels of oil per day. Umm Shaif and Nasr are located about 135 kilometers from the coast of Abu Dhabi and have a target production of 460,000 barrels of oil per day. In both concessions, ADNOC owns a 60 % stake.