Abu Dhabi National Oil Co., or Adnoc, has invited several international oil firms, in addition to existing partners, to bid for the renewal of a shared license to operate some of the emirate's largest onshore oil fields, two people familiar with the matter said.
Abu Dhabi National Oil Co., or Adnoc, has invited several international
oil firms, in addition to existing partners, to bid for the renewal of a shared
license to operate some of the emirate's largest onshore oil fields, two people
familiar with the matter said.
U.S.-based firms Chevron Corp. (CVX) and Occidental Petroleum Corp. (OXY),
China National Petroleum Corp., or CNPC,
Japan
's
Inpex Corp. (1605.TO), Korea National Oil Corp., or KNOC,
Norway
's
Statoil ASA (STO) and
Russia
's OAO
Rosneft (ROSN.RS) were among the new companies invited, the people said.
The 75-year-old concession, which expires at the end of the year, produces more
than half the
United Arab Emirates
crude
production of 2.6 million barrels a day and is one of the few major oil-producing
areas in the
Persian Gulf
where international companies
hold a stake.
Without an invitation, the companies would not have an opportunity to be
involved in the concession as the emirate does not open the competition to any
bidder.
Adnoc holds a 60% controlling stake in Abu Dhabi Co. for Onshore Oil
Operations, or Adco, which operates the concession. The remaining 40% is shared
between BP PLC (BP), Exxon Mobil Corp. (XOM), Royal Dutch Shell PLC (RDSB.LN),
Total SA (TOT) and Partex Oil & Gas.
Adnoc has already invited all existing partners except for Partex to reapply
for the concession.
In addition, "Adnoc is interested in getting new partners in the
concession and therefore they sent invitation letters to several companies back
in June," a person close to the matter told Dow Jones Newswires. "More
people could be allowed later but it is a good way to see who has the right
criteria to bid."
Chevron, Statoil, Rosneft, and CNPC would not say whether they had received the
invitations.
KNOC said it has submitted documents for the preliminary qualification review
and is waiting to hear back from Adnoc.
An Inpex spokesman would not comment on any specific project but said that the
company intends to expand its presence in
Abu
Dhabi
.
Occidental Petroleum did not respond to requests for comment.
Adnoc has already proposed to Abu Dhabi's highest oil authority, the Supreme
Petroleum Council, a one-year extension to the concession, saying the next 10
months aren't enough time to complete a new deal with international partners. The
council is expected to approve the extension soon.
The Adco concession, which covers six main deposits, is the largest in the
country with capacity to produce about 1.5 million barrels daily. The
United
Arab Emirates
, which includes
Abu
Dhabi
, plans to increase its output capacity to 3.5
million barrels a day by 2017, from its current estimated maximum output
capacity of around 2.85 million barrels a day.
Abu Dhabi
is home to more than 90% of
crude in the U.A.E., one of few
Middle East
countries that allow foreign companies to explore for and produce oil within
its borders. The Gulf state has four major concessions and has said it may
allow more foreign companies, such as from
South
Korea
and
China
, to
be partners in other, more marginal, oil fields.
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