Business

Consortium Of Indian Oil Companies Win 10% Interest In Abu Dhabi’s Offshore Concession

NEWS WORLD INDIA | 0
1973
| February 11 , 2018 , 16:31 IST

A consortium of Indian Oil companies led by ONGC Videsh has secured a 10% concession interest in Abu Dhabi’s offshore Lower Zakum concession for $600 Million.

State-owned Oil and Natural Gas Corp. and other Indian organizations consented to a 40-year contract for rights to pump crude from the Lower Zakum field in partnership with Abu Dhabi National Oil Co., according to an Adnoc statement. Adnoc signed the deal during the visit of Indian Prime Minister Narendra Modi to the capital of the United Arab Emirates on Saturday.

Abu Dhabi, which holds the majority of the U.A.E's. oil saves is searching for new partners at its offshore fields as the production concession for some deposits lapses one month from now. Partners in Abu Dhabi's fields get a large measure of raw petroleum similar to their stakes in return for tax and royalty payments and investment to boost output.

The Indian organizations will pay 2.2. billion dirhams ($600 million) to Abu Dhabi for their stake in the field, as indicated by the announcement, putting the general estimation of the store at $6 billion. Adnoc, which holds 60 percent property in its fields, expects to grant rights for another 30 percent of the Lower Zakum field and also to two other offshore crude blocks

The Indian consortium comprises of ONGC's entirely owned subsidiary ONGC Videsh, the Indian Oil Corp., and Bharat PetroResources, which is a 100 percent subsidiary of Bharat Petroleum Corp. Ltd, as indicated by the Adnoc statement. The concession will be worked by Adnoc Offshore, a subsidiary of Adnoc, on behalf of all concession partners.

Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan witnessed the signing of the agreement.