UAE: Oil Agreements Two 40-Year Concession Agreements Signed by Total for 1.45 Billion Dollars
Total has been awarded participating interests for the new Umm Shaif & Nasr concession and Lower Zakum concession by the Supreme Petroleum Council of the Emirate of Abu Dhabi and Adnoc w.e.f March 9, 2018. The deal is expected to bring the company a production of 80,000 barrels of oil per day in 2018.
Paris/France – Total has signed two new 40-year concession agreements with the Supreme Petroleum Council of the Emirate of Abu Dhabi (United Arab Emirates) and the Abu Dhabi National Oil Company (Adnoc). Under the terms of these agreements, Total is granted a 20 % participating interest in the new Umm Shaif & Nasr concession and 5 % in the Lower Zakum concession, effective March 9, 2018, for a total participation fee of 1.45 billion dollars, which represents an access cost of around 1 dollar per barrel of reserves. These interests bring to Total a production of 80,000 barrels of oil per day in 2018.
Located about 135 and 65 kilometers off the coast respectively, Umm Shaif and Lower Zakum are two of the major fields offshore and counting for around 20 % of Abu Dhabi production. In addition to the huge oil reserves and the potential to grow oil production beyond 450,000 barrels per day (including Nasr – the present production being at around 300,000 barrels per day), Umm Shaif also contains a giant gas-cap, which is to be developed in the scope of the concession with a gas production target of 500 mmscfd. Adnoc Offshore (100 % owned by Adnoc) will be the operator of all concessions offshore Abu Dhabi, to which Total, as a partner in the concessions, will bring its expertise by providing personnel and carrying out studies.
In addition, as part of this partnership, Total has also extended its concession with Adnoc in the offshore Abu Al Bu Koosh field, operated by Total with a 100 % interest, for three more years. This field produces approximately 10,000 barrels per day.