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29 March 2024

Abu Dhabi says oil output won’t be hurt by concession expiry

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By Staff

A 75-year oil concession granted by Abu Dhabi to foreign partners in onshore areas is about to expire but this will not affect crude production operations, state operator Abu Dhabi National Oil Company (Adnoc) has said.

In a statement carried by the official news agency WAM on Thursday, Adnoc said the concession awarded to a consortium of foreign companies by the Abu Dhabi Company for Onshore Oil Operations (Adco) would expire early next year.

"The 75-year onshore oil concession will expire early next year… however, Adco will continue its operation without disruption until the new concession is granted after a decision is taken on the new bids which will be submitted during this month.” it said.

"Regardless of the bidding process and whether or not new partners have been selected immediately, the business operations of Adco, which manages assets worth US$40 billion, will continue as usual.”

Producing nearly 60% of Abu Dhabi’s oil output and around 80% of its gas production, Adco, an affiliate of Adnoc and one of the oldest oil companies in the region, is working with a consortium that currently includes BP, Total, ExxonMobil, Royal Dutch Shell and Portugal's Partex.

Adnoc said that due to the high level of professionalism and valued assets, a large number of global firms are interested in submitting their bids to partner with Adnoc.

The largest oil producing firm in the UAE, Adco is carrying out projects to increase its production capacity by about 200,000 bpd to 1.8 million bpd by 2017.

The UAE, which controls 98 billion barrels of proven oil deposits, is among a handful of Middle East hydrocarbon producers to retain foreign partners in the oil industry.