The French oil giant Total SA signed on Sunday, March 18, agreements worth $1.45 bln with the Supreme Petroleum Council representing the government of the Emirate of Abu Dhabi and the state oil company Abu Dhabi National Oil Company (ADNOC).
As part of these agreements, Total obtains 20% stake in the new Umm Shaif & Nasr concessions and 5% stake in the Lower Zakum concession for a total participation fee of $1.45 bln, which represents an access cost of around 1 dollar per barrel of reserves. These interests bring to Total a production of 80,000 barrels of oil per day in 2018.
Umm Shaif and Lower Zakum are two of the main offshore fields and account for nearly 20% of Abu Dhabi’s production.
The deals came into force on 9 March and have 40-years term. They were signed by dr Sultan Ahmed Al Jaber, ADNOC Chief executive Officer and Patrick Pouyanné, Chairman and CEO of Total, during the signing ceremony at the Louvre Abu Dhabi.
In addition, the french supermajor has also extended its concession with ADNOC in the offshore Abu Al Bu Koosh field, operated by Total with a 100% interest, for three more years. This field produces approximately 10,000 barrels per day.