Abu Dhabi National Oil Company (ADNOC) announced on 11 March 2018 that it has signed two agreements awarding Eni stakes in two offshore concessions. Under the terms of the agreements, Eni has received a 10% interest in the Umm Shaif & Nasr concession and a 5% interest in the Lower Zakum concession, for participation fees of US$ 575 million and US$ 300 million respectively. The awards mark the first time an Italian company has been granted concession rights in Abu Dhabi.<P />Both concessions are operated by ADNOC subsidiary ADNOC Offshore (60%) and will be valid for a 40-year term, backdated to 9 March 2018. In the Lower Zakum concession Eni is also joining an ONGC-led Indian consortium (10%) and INPEX Corp (10%), whereas in the Umm Shaif & Nasr concession Eni is ANDOC's first partner to be assigned a stake. For both assets ANDOC is in the process of finalising the potential partners for the remaining interests.<P />Umm Shaif & Nasr and Lower Zakum are two of three new separate concession areas which have replaced the offshore concession operated by the Abu Dhabi Marine Operating Co (ADMA-OPCO). The ADMA offshore concession expired on 8 March 2018, after ADNOC chose not to extend it. The move followed 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 gain greater market access, broaden the partner base, expand technical expertise and maximize value<P />ADMA-OPCO, a JV comprised of ADNOC (60%), BP (14.67%), Total (13.33%) and INPEX Corp (12%), was established in 1977 to operate the ADMA concession, which among others included the Lower Zakum, Umm Shaif, Umm Lulu, Satah Al Razboot and Nasr fields. The current production of the Lower Zakum Field stands at around 400,000 bo/d, with the aim of reaching a production plateau of 450,000 bo/d by 2025. The field was discovered in 1963 and began production in 1967. The Umm Shaif and Nasr Fields have a production target of 460,000 bo/d. As ADNOC 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 former 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.
Eni has signed in Abu Dhabi 2 Concession Agreements for the acquisition of a 5% stake in the Lower Zakum offshore oil field and of a 10% stake in the oil, condensate and gas offshore fields of Umm Shaif and Nasr, for US$875 MM.