Total has signed 40-year concession agreements for three fields offshore Abu Dhabi with the Emirate’s Supreme Petroleum Council and ADNOC.
According to Offshore and other agency reports, the accords give Total a 20% interest in the new Umm Shaif and Nasr concession and 5% in the Lower Zakum concession, for a fee of $1.45 billion, and associated production this year of 80,000 b/d.
Umm Shaif and Lower Zakum, respectively 135 and 65 km (84 and 40 mi) offshore account for around 20% of Abu Dhabi’s production, with potential to grow oil production beyond 450,000 b/d. Under the agreement, Umm Shaif’s giant gas-cap will also be developed, with operator ADNOC targeting 500 MMcf/d.
Total said it would contribute expertise by providing personnel and performing technical studies.
Patrick Pouyanné, the company’s chairman and CEO, said the offshore concessions “contain giant reserves with low technical costs and offer significant growth potential… we intend to bring all of our competencies in order to make the most of the upside coming from the gas reserves, while we develop the oil production in the most effective way.”
In addition, Total has extended its concession with ADNOC for the offshore Abu Al Bu Koosh field, which it operates with a 100% interest, for three more years. This field currently delivers 10,000 b/d.
Total’s production in the Emirates last year was 290,000 boe/d.
