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Total Won't Leave Abu Dhabi After Concession Expires, CEO Says

Total Wont Leave Abu Dhabi After Concession Expires, CEO Says
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Δευ, 11 Νοεμβρίου 2013 - 18:19
French oil company Total SA (TOT) plans to continue operating in Abu Dhabi even if a key oil concession isn't renewed upon expiry in January, the company's chief executive said Sunday.
French oil company Total SA (TOT) plans to continue operating in Abu Dhabi even if a key oil concession isn't renewed upon expiry in January, the company's chief executive said Sunday.

The 75-year-old Adco concession, which encompasses wells with a capacity of about 1.6 million barrels a day, is split between multinationals including Total, BP PLC (BP), Exxon Mobil Corp. (XOM) and Royal Dutch Shell PLC (RDSA). Bids for a renewal were due last month, but the January expiration is widely expected to pass before a final decision is made.

"In between, we will still work as we do today--the difference is the concession is over," Christophe de Margerie said at a conference in the U.A.E. capital, adding that he didn't expect to move staff out of the country.

He said the company had developed a good understading of how to work with Adnoc, Abu Dhabi 's state oil company, he said.

"We've already developed long-lasting cooperation, and by definition, this will be used if we are retained as one of the successful bidders," he said.

Total had been asked to submit bid figures that assumed both 5% and 10% equity, he said, and was told to indicate in which fields it felt it had more operational skill than its competitors.

Asked whether he would be upset with a 5% stake, Mr. de Margerie said "upset is not the word we use, but when you compete, you compete for what would be the best for your company."

Mr. de Margerie said Total was on track to reach annual production targets despite challenges like leaking pipes at the Kashagan oil field in Kazakhstan. Production has been halted since last month at the giant field, which is operated through a joint venture that includes Total, Eni SpA (E), Shell, ExxonMobil and three other partners.

"We don't know when it will be restarting," Mr. De Margerie said, but "it will not restart before the end of the year. That is clear."

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