Abu Dhabi National Oil Company (ADNOC) has granted part of its offshore concessions to Cia Espanola de Petroleos SA (CEPSA) for $1.5 billion, Bloomberg has reported.
The Spanish producer and refiner will now become ADNOC’s second partner in the development of its offshore fields. The first part of the concessions was awarded to Indian companies in February 2018 in a deal worth $600 million on February 10th, according to Rigzone.
CEPSA Company, which is owned by Abu Dhabi’s Mubadala Investment Company and based in Madrid, will acquire a 20% stake in the development rights of the Sateh Al Razboot and Umm Lulu oil fields, located in the Persian Gulf.
“ADNOC is sending a message that they’re going to be very broad and geographically diverse in looking for new partners,” stated Jaafar Altaie, Managing Director of Abu Dhabi-based consultant Manaar Group.
“Adding a partner like CEPSA, which has a large refining and petrochemicals focus, gives ADNOC the option of moving further into downstream businesses,” he added.
ADNOC had split an oil partnership for an existing offshore into three blocks, and now the company is seeking to make new partnerships with parties that will hold as much as 40% of every block