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An Exxon sign is seen at a station in Manassas, Virginia. ExxonMobil said October 28, 2010 its profit soared 55 percent in the third quarter, driven in part by higher energy prices and rising oil production in Qatar.The US energy giant reported net earnings of 7.35 billion dollars, a strong advance from the 4.73 billion dollars posted in the 2009 third quarter that exceeded market expectations. Earnings per share of 1.44 dollars in the July-September period topped the consensus forecast of 1.39 dollars. (AFP)
Exxon Mobil wants to extend its oil concessions with Abu Dhabi, but asks for its contracts to be redrawn so it can use all its technology without rivals gaining access, its senior vice president said on Monday.
Multinational companies hold large stakes in concessions that pump most of the oil and gas from the Opec member, whose system allows oil and gas producers to acquire their equity stakes in the world's third largest oil exporter.
But in return, they have to provide much of the investment for new production, where margins are considered tight by international standards.
"We want to be able to continue talking about onshore concession extension ... one that allows us to bring all that experience and all that technology," Andrew P Swiger told Reuters on the sidelines of an industry conference.
"The current structure somewhat inhibits that because we're partnered with a number of other players which we're very happy to work with but the challenge is when you have a partnership like that it inhibits you from bringing some your best technology," he said in an interview.
Exxon holds a 9.5 per cent stake in Abu Dhabi's company for onshore operations (Adco), which operates onshore and in the shallow coastal waters of Abu Dhabi. Other partners include Royal Dutch Shell, BP and Total.
Swiger did not say what form a possible change in the partnership structure with Abu Dhabi's National Oil Company (Adnoc) could take.
"We're openly discussing how we can construct this in such a way that we can bring everything we have to the table and be fairly rewarded for it and not suffer leakage of propriety technology," he said.
The company also has a 28 per cent stake in the concession for the Upper Zakum field, ranked as the world's fourth largest field and operated by Zakum Development Company (Zadco). The Adco concession expires in 2014, and Zadco in 2026.
Upper Zakum accounts for about a third of the UAE's plan to boost total capacity of 3.5 million barrels per day (bpd) in 2018 from around 2.8 million bpd.
Demand from the developing world would drive global oil demand towards 2030, Swiger said, with a rise of 25 per cent in global energy demand and a 50 per cent rise in the demand from the Middle East alone.
Robust demand would absorb increases in supply, he said.
"There's a lot of supply coming onstream but a lot of what's onstream now is declining ... You have to pedal awfully hard just to stay even," he said.
"When you look at where we expect world demand to go and you look at what's happening in the developed resource base for oil and the declines there, that's a pretty impressive gap that has to be filled to meet that demand."
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