Eni deal a testament to Abu Dhabi's attraction

Eni Wins Two Abu Dhabi Oil Concessions for $875 Million

Eni Wins Two Abu Dhabi Oil Concessions for $875 Million

The Italian company said the move was a strategic one that gave it access to some of the largest pools of hydrocarbons in the world.

Under the agreements, which are for a duration of 40 years and include a total participation fee of around $875 million, Eni will obtain a five percent stake in the Lower Zakum offshore oil field and a 10 percent stake in the oil, condensate and gas offshore fields of Umm Shaif and Nasr.

On Sunday, Eni said it had agreed to sell 10% of its Shorouk concession, off the Egyptian coast in the Mediterranean, to Abu Dhabi's Mubadala Petroleum for $934 million.

A group of Indian companies paid $600 million for rights to 10 percent of Lower Zakum on February 10, and Japan's Inpex bought the same-sized stake later that month.

Adnoc noted that the award marks the first concession rights offering to an Italian energy company in the country's oil and gas sector. The signing ceremony was held in Abu Dhabi, United Arab Emirates.

More news: Bound flight makes emergency landing in Albuquerque after cabin fills with smoke
More news: Apple grabs 'Bob's Burgers' creator's new animated musical series
More news: Women's Cricket: Australia beat India by eight wickets in 1st ODI

The emirate is seeking partners that can contribute technology and join projects to double refining capacity and almost triple petrochemical output, Adnoc said last week. It plans to offer projects for investment as early as May and will also seek bids for new exploration blocks, the company said.

"The ADNOC deal provides low-risk, long-term barrels, and lays the foundation for Eni's Middle East portfolio", said Tom Quinn, senior research analyst for Middle East upstream at Wood Mackenzie, adding that this was especially notable when compared with its other blocks in Oman and Lebanon which are considered high risk. Adnoc "is looking to find a balance in its strategic partners" between those from major oil-importing nations such as Japan and India and global oil companies with technology and project expertise, he said.

The agreement was signed by Khaldoon Al Mubarak, group chief executive of Mubadala Investment Company, on behalf of Mubadala Petroleum, and Claudio Descalzi, chief executive of Eni.

Combined, the fields in question have a target rate of production of 910,000 barrels of oil per day. Adnoc says it now can pump about 3 million barrels daily, with just under half coming from offshore deposits.

Abu Dhabi divided up an existing offshore oil partnership into three blocks and is seeking new partners to hold as much as 40 percent of each of the new concessions.

Recommended News

  • The Next Hearthstone Expansion Is Called The Witchwood

    The Next Hearthstone Expansion Is Called The Witchwood

    The Witchwood will also see the addition of the Monster Hunt mode, which is similar to the Dungeon Run from Kobolds & Catacombs. Hearthstone just entered the Year of the Raven , and now we know what to expect from its first expansion.
    Day 1 : Violence in Telangana Assembly

    Day 1 : Violence in Telangana Assembly

    However, Komatireddy, who had already made it clear that the Opposition would oppose the governor's address, resorted to the act. They tore copies of the speech and flung it in the air while a few MLAs also broke microphones and threw them towards the podium.
    Trump stumps for Republican Rick Saccone in Pennsylvania

    Trump stumps for Republican Rick Saccone in Pennsylvania

    The president said he's decided on a slogan for his 2020 re-election campaign. "Oh I'd love Oprah to win, I'd love to beat Oprah. With the election just three days away, both campaigns have been attempting to galvanize their voters to turn out to the polls.
  • Ohio State Picks Up Number Five Seed In NCAA Tournament

    Ohio State Picks Up Number Five Seed In NCAA Tournament

    Ohio State forward Keita Bates-Diop, left, and forward Jae'Sean Tate celebrate after defeating Michigan State earlier this season. The Buckeyes will begin their tournament run with a match-up vs. the Jackrabbits of South Dakota State on Thursday at 4 p.m.
    Disgraced pharma boss Martin Shkreli 'cries' as he's jailed for 7 years

    Disgraced pharma boss Martin Shkreli 'cries' as he's jailed for 7 years

    In fact, Matsumoto sent him back to jail for the stunt that Shkreli later claimed was a joke. It may be the most famous album ever kept in the possession of just one person.
    Percent Increase in Roseville Gas Prices Since 2016

    Percent Increase in Roseville Gas Prices Since 2016

    Local prices are higher than the national average of $2.51 per gallon, which is down 1 cent from a week ago . Oil prices remain volatile yet several dollars off recent highs.
  • Kirk Cousins and Case Keenum buzz

    Kirk Cousins and Case Keenum buzz

    I am filled with gratitude over the unwavering support and devotion from you, the fans, both on and off the field. Reports persist that teams are preparing to offer Cousins significant guarantees for his next contract.
    Neil Walker: Agrees to deal with Yankees

    Neil Walker: Agrees to deal with Yankees

    That would mean touted prospects Gleyber Torres and Miguel Andujar probably would start the season in the minor leagues. After finishing one win away from the World Series last season, the Yankees appear to be all-in on another run in 2018.
    Rebels shoot dead protester in Syria's Ghouta: monitor

    Rebels shoot dead protester in Syria's Ghouta: monitor

    As the differences lingered, regime forces have splintered eastern Ghouta towns and villages into three isolated pockets. Burials of the dead at the city cemetery have been suspended due to the intensity of aerial strikes, it added.
  • Packers have reached out to Jimmy Graham

    Packers have reached out to Jimmy Graham

    That decision backfired in spectacular fashion during a messy, midseason divorce, leaving the Packers paper-thin at tight end. But if a reunion doesn't work out in New Orleans, the Packers could be the next team in line for the Pro Bowl tight end.
    House Intel Panel Will Announce End Of Russia Probe Interviews Monday

    House Intel Panel Will Announce End Of Russia Probe Interviews Monday

    The Senate Intelligence Committee is preparing to put out recommendations and hold a hearing on election security this month. Even while he had stepped aside, Nunes upset Democrats by continuing to issue subpoenas for documents and witnesses.
    Planet Alpha is an Upcoming Sci-Fi Platformer From Former IO Dev

    Planet Alpha is an Upcoming Sci-Fi Platformer From Former IO Dev

    You'll be making your way across an alien planet, escaping from "relentless enemies" as they chase you across the world.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.