Total Signs Two New Abu Dhabi Concessions
France’s Total has signed two new concessions in Abu Dhabi.
It announced March 18 it has been granted a 20% participating interest in the new Umm Shaif and Nasr concession and 5% in the Lower Zakum concession, effective March 9th, 2018, for a total participation fee of $1.45bn, representing an access cost of around $1 per bbl of reserves. They increase Total’s net production in Abu Dhabi, the most productive of the seven United Arab Emirates (UAE), to 80,000 b/d oil in 2018.
Umm Shaif and Lower Zakum account for one-fifth of Abu Dhabi production and have the potential to produce beyond 450,000 b/d (including Nasr) and 300,000 b/d respectively. Both will be operated by state Adnoc.
Umm Shaif also contains a giant gas-cap, which is to be developed in the scope of the concession with a gas production target of 500mn ft3/d (5.2bn m3/yr). Total CEO Patrick Pouyanne said: “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.”
Italy’s Eni a week earlier signed a deal to acquire a 10% stake in Umm Shaif and Nasr, plus 5% of the Lower Zakum oil field, for a combined $875mn.
Total has been present in the UAE for almost 80 years and had equity production there in 2017 of 290,000 boe/d, which includes stakes in the Adco onshore concession, Adnoc gas processing, Adnoc LNG (formerly Adgas), National Gas Shipping Co, and Adnoc Fertiliser.
Partnered by Abu Dhabi state-owned Mubudala, Total also holds a 24.5% stake in the Dolphin Energy gas production and pipeline venture.
Total concessions in Abu Dhabi (Map credit: Total)