India a contender for Adco concession
ABU DHABI, January 27, 2017 – Speculation abounds around the topic of who will receive the last 12% in Abu Dhabi Company for Onshore Petroleum Operations’ (Adco) onshore concession, with many expecting the UAE to use the opportunity to strengthen ties with China.
However, TOGY has learned from high-level sources that a player from India may be a more likely choice. Earlier this week, energy ties between India and the UAE received a significant boost with the agreement between Indian Strategic Petroleum Reserves and Abu Dhabi National Oil Company (ADNOC) that saw the UAE gain access to one of India’s crude storage facilities.
Speaking to Indian media on Wednesday, ADNOC chief executive Sultan Al Jaber stated the intention to deepen ties. “We would also like to invite Indian oil companies to come and explore investment opportunities in Abu Dhabi in the field of upstream oil and gas as well as downstream oil and gas in refining and petrochemicals,” the CEO was quoted as saying.
One of the world’s largest consumers of energy, 79% of India’s crude oil needs is satisfied by imports, and until now the country has made limited investment in upstream projects in stable, oil-rich regions.
The Adco concession area includes the 15 major onshore oilfields of Abu Dhabi, which, at 1.6 million bopd, together represent more than half of the emirate’s production. Adco hopes to raise production in the concession area to 1.8 million bopd.
The Supreme Petroleum Council is evaluating proposals with the advice of ADNOC in the hopes of completing negotiations for the remaining 12% stake in Adco.