Adco concession contracts sweetened

Abu Dhabi

ABU DHABI, February 6, 2017 – Abu Dhabi National Oil Company has reportedly worked to improve the term of the contracts governing the Abu Dhabi Company for Onshore Petroleum Operations’ (Adco) concession.

Sources familiar with the matter late last week said the changes were made during BP’s private negotiations with the government in December, and include improved taxation and depreciation terms for companies involved in the Adco venture. That month, BP acquired a 10% stake in a deal valued at USD 2.2 billion.

An ADNOC media official told Bloomberg that the Adco concession terms apply to all existing and future partners, and are aimed at raising interest in the remaining 12% of the concession still to be awarded.

In addition to ADNOC (60%), Total and BP hold 10% each in Adco, with the remainder held by Inpex (5%) and GS Energy (3%).