Abu Dhabi National Oil Company (Adnoc) has said a dozen international oil companies are seeking stakes in its offshore Abu Dhabi Marine Operating Company (Adma-Opco) concession, which comes up for renewal in March next year, writes Nassir Shirkhani.

Adnoc chief executive Sultan Ahmed al-Jaber said low-cost production in Abu Dhabi was ensuring intense interest in the concession, which has long been held by UK supermajor BP, France’s Total and Japan Oil Development Company (Jodco).

“Our enhanced efficiency is reinforcing our position among the world’s lowest-cost producers and attracting a diverse class of international investors,” Jaber said.

“This is clearly reflected in the unprecedented interest in the upcoming offshore concessions, which have in fact attracted over a dozen potential partners from all over the world. That is an achievement.’’

Adnoc is splitting Adma-Opco into two or more areas with new terms to unlock greater value and increase opportunities for partnerships.

The existing concession, dating back to 1953 and in which Adnoc has a 60% stake, is currently pumping around 700,000 barrels per day of oil and is projected to have a capacity of about 1 million bpd by 2021.

Jaber did not name the international players bidding for stakes in Adma-Opco, but BP said it is keen to renew its participation provided it gets a reasonable rate of return.

Total is also likely to bid. Other bidders include companies from China, Japan, India and South Korea.

Indian state companies have confirmed they are in talks with Adnoc to acquire a stake of between 10% and 12% in the offshore oil concession.

India, the world’s third-biggest oil consumer, has urged its state oil companies to acquire assets overseas to improve energy security.

Officials from ONGC Videsh, Bharat Petroleum Corporation, Oil India and Indian Oil Corporation said recently they are jointly seeking a stake in Adma-Opco.

The current shareholders in the concession are BP with 14.67%, Total with 13.33% and Jodco with 12%.

Adnoc plans to retain its 60% stake in the renewed concession called Adnoc Offshore.

Adnoc said in July it would open up for new partnerships and co-investments as part of a new approach to spur growth and increase revenues, while also enhancing performance and securing greater access for its oil in key growth markets such as Asia.

Abu Dhabi has, in the past two years, brought Chinese and Korean companies into its onshore fields.

The renewed Adma-Opco concession and the Zadco-operated Upper Zakum fields will be under a new integrated offshore company created by the merger of the two state-controlled companies.

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Intense’ interest in forthcoming Adma-Opco concession renewal