DUBAI: Abu Dhabi National Oil Company (ADNOC) said on Sunday it had signed 40-year agreements with Eni , awarding the Italian company a 10 percent stake in its Umm Shaif and Nasr offshore oil concession and a 5 percent stake in Lower Zakum.
Eni has contributed a participation fee of 2.1 billion dirhams ($575 million) for the Umm Shaif and Nasr offshore concession and a fee of 1.1 billion dirhams for the Lower Zakum oil concession, ADNOC said in a statement.
The signing ceremony in Abu Dhabi was attended by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan and Italian premier Paolo Gentiloni.
“The awards mark the first time an Italian energy company has been given concession rights in Abu Dhabi’s oil and gas sector,” ADNOC said in the statement.
The agreements with Eni have a term of 40 years and are backdated to March 9, 2018, ADNOC said.
“Our partnership with Eni, and other concession partners, will enable us to accelerate our growth, increase revenue and improve integration across the upstream value chain,” ADNOC Chief Executive Sultan Al-Jaber said in the statement.
Last month, a consortium led by India’s Oil and Natural Gas Corp. (ONGC), Japan’s INPEX and Spain’s Cepsa were all awarded stakes in different areas of the offshore concession.
“This is the first award by ADNOC to a major (in the offshore renewal), and shows it is looking to find a balance in its strategic partners between companies from major buyers, such as Japan and India, and IOCs (international oil companies) with technology and project delivery expertise,” said Tom Quinn, senior research analyst, Middle East Upstream, Wood Mackenzie.
The ADNOC deal also provides low-risk, long-term supply to Eni, and lays the foundation for the Italian company’s Middle East portfolio, Quinn said.
ADNOC said on Sunday it was still finalizing opportunities with potential partners for the remaining 15 percent in the Lower Zakum concession and for the remaining 30 percent stake in the Umm Shaif and Nasr concession. ADNOC will keep a 60 percent share in both concessions.
In August, ADNOC said it would split its ADMA-OPCO offshore concession into three areas — Lower Zakum, Umm Shaif and Nasr, and Sateh Al Razboot and Umm Lulu — with new terms to unlock greater value and increase opportunities for partnerships.
The existing ADMA-OPCO concession, which expired on March 8 produces around 700,000 barrels per day (bpd) of oil and is projected to have a capacity of about 1.0 million bpd by 2021.
The original shareholders in the ADMA-OPCO included BP , and Total SA.
UAE’s ADNOC says awards Italy’s Eni stakes in new oil concessions
UAE’s ADNOC says awards Italy’s Eni stakes in new oil concessions
Closing Bell: Saudi main index climbs to 10,485
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59.
The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining.
The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65.
The MSCI Tadawul Index advanced by 0.13 points to 1,377.44.
The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38.
The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85.
Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95.
Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03.
The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28.
In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80.
On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co.
Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement.
The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company.
The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026.
The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.
