Portuguese oil company Partex is positive about securing a minor stake in an Abu Dhabi concession as Abu Dhabi National Oil Company (Adnoc) mulls options to decide partners for the prestigious Abu Dhabi Company for Onshore Oil Operations (Adco) deal.
Adnoc earlier this year granted a 10 per cent stake to French oil major Total, 5 per cent to Japan’s Inpex and 3 per cent to South Korea’s GS Energy. It is yet to take a decision on the remaining companies to be part of the new concession.
Adnoc holds 60 per cent in Adco while 40 per cent is being awarded to international oil companies to develop onshore oilfields for a period of 40 years. Companies bidding for the deal include Royal Dutch Shell, BP, Occidental Petroleum, Statoil, China National Petroleum Corporation and Italy’s ENI.
According to news reports, Total paid $2.2 billion, Inpex $1.1 billion and GS Energy $675 for the stakes though the companies have never officially confirmed value of the deals.
Adco’s concession covers a collection of onshore fields that together account for around 40 per cent of the country’s 2.8 million barrels a day oil production.
Though Partex was not part of the bidding process, a representative said he is confident the company will be invited to be a part of the new concession.
The company renewed its concession with Abu Dhabi Gas Industries Limited (Gasco) in 2008 for 20 years. It holds a 2 per cent stake in Gasco, the Adnoc subsidiary responsible for Abu Dhabi’s onshore gas production and processing.
“We not only have a long association with the Abu Dhabi Government, we know the country, the people, the oil resources and the requirements for their development very well,” said Jose M. Pereira, Middle East Representative at Partex Oil and Gas in Abu Dhabi. “We were part and parcel of the development of the oil industry in the region and we continue contributing to the development of the people of UAE.”
He said the company has the resources and capabilities to contribute to the success of the new concession. “We are very positive about the outcome on the concession.”
The UAE, which holds about 6 per cent of global oil reserves, is intending to increase production capacity to 3.5 million barrels of oil per day by 2017 from the present 2.8 million barrels.
The company has had a presence in the UAE for more than 75 years. The official said its participation in the Middle East was not substantially affected due to falling oil prices.
“Some projects were revised or delayed … governments are continuing to spend in the oil sector to increase production and we see no long-term impact on our projects,” said Pereira.
The company did undertake cost cutting measures, like everybody else, but did not have any layoffs. “We expect oil prices to bounce back.”
Partex holds 2 per cent in Petroleum Development Oman and Oman LNG and 1 per cent in Mukhaizna.
Source: Gulf News