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UAE's ADNOC says awards Italy's Eni stakes in new oil concessions

Reuters  |  DUBAI 

(Reuters) - National Company (ADNOC) said on Sunday it had signed 40-year agreements with Eni, awarding the Italian company a 10 percent stake in its Shaif and concession and a 5 percent stake in

has contributed a participation fee of 2.1 billion dirhams ($575 million) for the Shaif and offshore concession and a fee of 1.1 billion dirhams for the concession, ADNOC said in a statement.

The signing ceremony in was attended by Sheikh and Italian

"The awards mark the first time an Italian company has been given concession rights in Abu Dhabi's and gas sector," ADNOC said in the statement.

The agreements with have a term of 40 years and are backdated to March 9, 2018, ADNOC said.

"Our partnership with Eni, and other concession partners, will enable us to accelerate our growth, increase revenue and improve integration across the upstream value chain," ADNOC said in the statement.

Last month, a consortium led by India's and Natural Gas Corp (ONGC), Japan's and Spain's were all awarded stakes in different areas of the offshore concession.

"This is the first award by ADNOC to a major (in the offshore renewal), and shows it is looking to find a balance in its strategic partners between companies from major buyers, such as and India, and IOCs (international companies) with technology and project delivery expertise," said Tom Quinn, senior research analyst, Upstream,

The ADNOC deal also provides low-risk, long-term supply to Eni, and lays the foundation for the Italian company's portfolio, Quinn said.

ADNOC said on Sunday it was still finalising opportunities with potential partners for the remaining 15 percent in the concession and for the remaining 30 percent stake in the Shaif and concession. ADNOC will keep a 60 percent share in both concessions.

In August, ADNOC said it would split its ADMA-OPCO offshore concession into three areas - Lower Zakum, Shaif and Nasr, and Sateh and Lulu - with new terms to unlock greater value and increase opportunities for partnerships.

The existing ADMA-OPCO concession, which expired on March 8 produces around 700,000 barrels per day (bpd) of and is projected to have a capacity of about 1.0 million bpd by 2021.

The original shareholders in the ADMA-OPCO included BP, and

(Reporting by Rania El Gamal; Additional reporting by Florence Tan; Editing by David Evans, Louise Heavens)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 08:58 IST