Diversity factor

What are the benefits of the new concession agreement for the company?
The new concession agreement is a major development for us, not only in that we got some new concession partners, but also in the geographic spread of the players: 20% from the East – two Chinese firms, a [South] Korean company and a Japanese one – and 20% from the West – BP and Total. The other 60% is held by the Abu Dhabi National Oil Company, ADNOC. It shows the strategic approach ADNOC takes to partnering with its shareholders.
I believe this is part of the vision of the Emirate of Abu Dhabi: to partner with those who have the same values and beliefs and have the same drive for maximising the value of our oil and gas resources, while bringing expertise and investment market access.
The shareholders have very easily integrated and transformed the way they play their parts. While they are shareholders, some of them also have asset lead roles on some of the assets. That also has to be factored into the methodology of the running of ADNOC Onshore.

How capable are the partner companies of operating fields?
We select our partners carefully. Their track record and offering was very competitive and extremely robust. We have great expectations about the value they will add for the business.
With our partners, ADNOC Onshore will be tapping into new reservoirs and will be delivering more from existing reservoirs. Equally, we will harness their expertise and technologies. All of our partners have a lot to offer. They have been working in different fields in different locations across the globe, which will position them very well to participate here. They will also contribute to our ultimate target of achieving up to a 70% recovery rate at the end of field life.

How do you plan to help achieve ADNOC’s oil production capacity target of 3.5 million bpd over the course of 2018?
We are making good progress towards that target. Projects have already been awarded and are running. More will come in line as we execute our plans. The full campaign of drilling and adding additional facilities is in place. For example, the Bu Hasa and Bab fields will contribute to this goal.

Have you considered carbon dioxide injections in your fields?
Absolutely. ADNOC was the first national oil company to pilot CO2 injection in EOR in 2009. Al Reyadah, our joint venture with <a href='https://staging.theenergyyear.com/companies-institutions/masdar/’>Masdar, unveiled its first project in November 2016, with the capacity to sequester up 800,000 tonnes of CO2 each year. The facility captures CO2 emitted by a major Abu Dhabi steel producer, Emirates Steel Industries, before piping it 43 kilometres to ADNOC Onshore’s Rumaitha and Bab oilfields, in Abu Dhabi’s main onshore oilfield concession.
The Al Reyadah facility is the first project of its kind in the world to harness CO2 from an iron and steel plant. It includes the world’s largest high-pressure compressor unit, which can take 41 mcf [1.16 mcm] of dry CO2 and compress it into a state where it acts like a liquid and can be shipped by pipeline for utilisation and safe storage underground.

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