Abu Dhabi National Oil Company (ADNOC) announced on 18 February 2018 that it has signed an agreement awarding a 20% interest in Abu Dhabi's new Satah Al Razboot (SARB) and Umm Lulu concession to CEPSA. Under the agreement, CEPSA has paid a participation fee of US$ 1.5 billion to join ADNOC subsidiary and operator ADNOC Offshore (60%), as well as other yet-to-be determined international partners in the concession. ANDOC stated that it is in the process of finalising the potential partners for the remaining 20% interest. The 40-year concession has an effective date of 9 March 2018. <P />The SARB and Umm Lulu concession is one of three new separate concession areas which will replace the current offshore concession operated by the Abu Dhabi Marine Operating Co (ADMA-OPCO). The ADMA offshore concession will expire on 8 March 2018, after ADNOC chose not to extend it. The move follows the company's decision to expand its strategic partnership model, as well as the active management of its portfolio of assets. The company stated that the new approach, which builds on its flexible and enhanced operating model as well as its 2030 growth strategy, will enable it to unlock and maximize value. <P />ADMA-OPCO, a JV comprising ADNOC (60%), BP (14.67%), Total (13.33%) and INPEX Corp (12%), was established in 1977 to operate the ADMA concession, which among others includes the Lower Zakum, Umm Shaif, Nasr, Satah Al Razboot and Umm Lulu fields. The latter two as well as the smaller Bin Nasher and Al Bateel fields will make up the new SARB & Umm Lulu concession. ADNOC stated that it is looking to raise production capacity from the SARB and Umm Lulu fields to 215,000 bo/d, without providing a timeline for this target. As the company looks to boost the country's oil production capacity to 3.5 MMbo/d in 2018, the development of its offshore fields is of strategic importance. The ADMA concession area, which produces around 700,000 bo/d, is planned to have a production capacity of about 1.0 MMbo/d by 2021.
Cepsa has won a 20% stake in the Umm Lulu and Satah Al Razboot (SARB) concession for US$1,5 billion.