ONGC Led Indian Consortium to Acquire 10% Stake in Lower Zakum Concession

ONGC is due to sign a contract on Saturday to acquire a stake in Abu Dhabi National Oil Company’s offshore oil concession

Hon'ble Prime Minister Shri Narendra Modi said, "The ADNOC offshore concession in favor of the Indian consortium has taken our bilateral engagement in the oil and gas sector to a new level, which befits the comprehensive strategic partnership between India & UAE."ADNOC Group's CEO, Dr Sultan Ahmed Al Jaber stated that this strategic partnership with ONGC and other members of the consortium would help India meet its growing demand for energy and refined products, and create opportunities for ADNOC Group to increase its market share in a key growth market".

Sources told Reuters that the ONGC-led consortium would get up to a 10-percent stake in one of the areas of the concession.

The concession deal "will help India meet its growing demand for energy and refined products, create opportunities for ADNOC to increase its market share in a key growth market, and build a solid foundation as ADNOC explores potential worldwide investments, particularly focused on downstream opportunities", ADNOC's Chief Executive Sultan al-Jaber said in the statement.

Abu Dhabi, which holds most of the U.A.E.'s oil reserves, is looking for new partners at its offshore fields in the Persian Gulf as the current production concession for some deposits expires next month.

The Indian consortium is comprised of ONGC's wholly owned subsidiary ONGC Videsh, Indian Oil Corp., and Bharat PetroResources, which is a 100 percent subsidiary of Bharat Petroleum Corp., according to the Adnoc statement. The existing ADMA-OPCO concession, in which ADNOC has a 60 percent stake that it will retain, produces around 700,000 barrels per day (bpd) of oil and is projected to have a capacity of about 1.0 million bpd by 2021.

"This mutually beneficial partnership will help India meet its growing demand for energy and refined products, create opportunities for Adnoc to increase its market share in a key growth market, and build a solid foundation as Adnoc explores potential global investments, particularly focused on downstream opportunities". An official announcement is expected later today.

"The current production of this field is about 400,000 barrels of oil per day (20 million tonnes per annum) and the Indian consortium's annual share shall be about 2 million tonnes", OVL said in a press statement. The Indian win gives the country a direct stake in Middle Eastern barrels. The producer has said it received more than 10 bids from companies seeking to work on the fields. We are hopeful that this historic agreement will lead to further opportunities for Indian oil and gas companies to participate in the UAE's energy sector. The UAE is one of the largest suppliers of crude oil to India and is also the 10th largest investor. Adnoc signed the deal during the visit of Indian Prime Minister Narendra Modi to the capital of the United Arab Emirates on Saturday.

ADNOC signed a deal a year ago to store about 6 million barrels of oil at India's Mangalore storage site, taking up about half of its capacity. This agreement will enable Adnoc to cater to a part of India's massive oil demand, over 80 per cent of which is met by imports.

Related:

Comments

Latest news

Trump says Jerusalem recognition 'highest point' reached as President so far
Friedman, among the top Trump advisers who promoted the Jerusalem move, is a former contributor to settler causes. That drew a rebuke from the Palestinian administration.

White House to Roll Out Trump Infrastructure Plan
The current permitting structure is overly concerned with preventing litigation and not enough on outcomes, the official said. Jay Timmons, president of the National Association of Manufacturers, cheered the plan.

Jennison Associates LLC Has $22.72 Million Stake in SeaWorld Entertainment Inc (SEAS)
They set an "overweight" rating for the company. (NYSE:PRLB) earned "Outperform" rating by FBR Capital on Wednesday, May 11. Oppenheimer Asset Management Inc. grew its position in SeaWorld Entertainment by 3.0% during the 2nd quarter. (NYSE:SEAS).

John Stamos shares honeymoon photo from Disney's Magic Kingdom
Pictured: Stamos and McHugh attend the 24th Annual Screen Actors Guild Awards at The Shrine Auditorium on January 21, 2018 in Los Angeles.

Investment Research Analysts Opinion: Tetra Tech, Inc. (TTEK), Era Group Inc. (ERA)
Tetra Tech, Inc is a provider of consulting, engineering, program management, construction management, and technical services. The company was upgraded on Tuesday, May 31 by Canaccord Genuity. (NASDAQ:TTEK) on Wednesday, August 9 with "Buy" rating.

Other news