Total UAE exploration and production president Hatem Nuseibeh speaks to TOGY about changing concession agreements and increasing recovery factor goals. In January 2014, the French super-major signed a 40-year agreement with Abu Dhabi National Oil Company (ADNOC) to acquire a 10% interest in onshore assets owned by the Abu Dhabi Onshore Company (ADCO).
How will concessions that are up for renewal affect Abu Dhabi’s oil and gas industry?
Abu Dhabi is going through an incredibly transformative period, where concessions and prior agreements are in flux.
In 2018, the Abu Dhabi Marine Operating Company concessions will come to an end and new companies will be invited to bid for equity in the operating company. Additionally, the existing sales contracts for the Abu Dhabi Gas Liquefaction Company will be up for renewal in 2019. Many historical agreements, some of which have been in place for several decades, will need to be redefined.
What effect does the current natural gas market have on Abu Dhabi?
The future of Abu Dhabi will depend heavily on its gas balance. Abu Dhabi consumes much of its produced gas and imports an additional 56.6 mcm (2 bcf) per day from Qatar through the Dolphin Pipeline, which has a capacity of 85 mcm (3 bcf) per day. This is in addition to the gas imported by the Dubai Supply Authority. The need for additional gas imports will also depend on the ability of the country to increase its recovery rate at its producing fields.
How does the renewal of ADCO onshore oilfield concessions differ from other contracting vehicles in today’s hydrocarbons market?
The new ADCO agreement is very different from any other concession or production-sharing contract that we have seen to date. This is because the IOCs participating in the collaborative deal operate more like partners.
The new ADCO platform promotes co-operation between participating IOCs, such as Total, South Korea’s GS Energy, Inpex of Japan, ADNOC and its subsidiary ADCO. This new contracting vehicle ensures that the Middle Eastern nation will have access to all of Total’s technology in addition to technology belonging to participating companies.
This represents a huge shift in practice. The companies will operate more closely than partners that only attend meetings to discuss production figures. The participating companies will influence how ADCO develops its onshore assets. ADNOC has implemented an efficient platform for understanding the needs of IOCs, while maximising the benefits for itself.
For more news and features, click here.
TOGY talks to Sylvain Itté, French Ambassador to Angola, about the strong economic and cultural ties between the two countries,… Read More
TOGY talks to Li Patrik, director of energy, environment, infrastructure at the China-Britain Business Council (CBBC), about the difficulties of… Read More
TOGY talks to Río Negro province Secretary of Hydrocarbons Sebastian Caldiero about policies implemented by the provincial government to manage… Read More
TOGY talks to Heba Filobbos, area manager of the Northern Gulf for Halliburton, about the company’s experience working as an… Read More
TOGY talks to Christopher Gunson, partner at Amereller, about the oil and gas industry in the UAE and the surrounding… Read More
TOGY talks to Graeme Taylor, Vice President for Angola at Halliburton, about forecasted stabilisation, onshore potential and the qualities required… Read More
This website uses cookies.