Total ADNOC deal : Total has made a AED5.3 billion ($1.45 billion) deal with the Abu Dhabi National Oil Company (ADNOC) to take stakes in two new offshore blocks in Abu Dhabi.

As per the agreements signed by the parties, the French oil and gas giant has secured a stake of 20% in the Umm Shaif and Nasr concession for $1.15 billion and a stake of 5% in the Lower Zakum concession for $300 million for a term of 40 years.

Total says that the two deals represent an access cost of nearly $1 per barrel of reserves and that the stakes take its daily production to 80,000 barrels of oil in 2018.

Commenting on the Total ADNOC deal, Patrick Pouyanne – Chairman and CEO of Total, said: “Today’s announcement marks a new chapter in Total’s long and successful partnership with Abu Dhabi and ADNOC. These agreements ensure Total secures long-term access to significant and competitive hydrocarbon resources that we already know very well.

“We are committed to working alongside ADNOC and the other concession partners, utilising our experience gained from the former ADMA offshore concession, to fully realise the potential of both of these new concession areas.”

ADNOC Offshore, a subsidiary of ADNOC with stakes of 60% will be the operator of the two offshore Abu Dhabi concessions.

Apart from the stakes in the Umm Shaif and Nasr concession and the Lower Zakum concessions, Total has extended its concession agreement with ADNOC in the offshore Abu Al Bu Koosh field by three more years. Total has a stake of 100% in the Abu Al Bu Koosh field, which has a production of around 10,000 barrels per day.

Dr Sultan Ahmed Al Jaber – CEO of ADNOC Group, commenting on the Total ADNOC deal, said: “Total brings deep knowledge and understanding of Abu Dhabi’s offshore oil and gas fields, as well as specialist expertise and technology that will help accelerate the development of the giant Umm Shaif gas cap.

“ADNOC has recently seen encouraging results from the first gas cap production pilot well at Umm Shaif, which will play an important role in delivering our 2030 smart growth strategy and a sustainable and economic gas supply.

“At the same time, we both see tremendous opportunities, through this partnership, to create greater value and generate higher returns across our joint activities.”

ADNOC is now left to find new partners for the remaining 10% stakes in the Lower Zakum and the Umm Shaif & Nasr fields.

Earlier this month, Italian energy company Eni acquired a stake of 10% in Umm Shaif and Nasr oil, condensate and gas offshore fields an 5% in the Lower Zakum offshore oil field in a deal of around $875 million with ADNOC.

  Abu Dhabi, Abu Dhabi offshore concessions, ADNOC, Lower Zakum oil field, Nasr field, Oil and gas industry news, Oil and gas news, Total, Total ADNOC deal, UAE, Umm Shaif field