Eni secures $875mn ADNOC offshore deals

Italian oil firm continues to build up burgeoning Middle East profile with major contract award.

Italian Premier Paolo Gentiloni at the signing ceremony in Abu Dhabi.
Italian Premier Paolo Gentiloni at the signing ceremony in Abu Dhabi.

The Abu Dhabi National Oil Company (ADNOC) has signed 40 year tie-ups with Italian oil firm Eni. The deals see the Rome based multinational win a 10% stake in the Umm Shaif and Nasr offshore oil concessions as well as a 5% holding in Lower Zakum.

Eni has paid $575mn for the Umm Shaif and Nasr offshore concessions and a fee of $300mn for the Lower Zakum oil concession. The signing ceremony in Abu Dhabi was attended by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan and Italian Prime Minister 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 a statement.

The 40 year agreements with Eni are backdated to March 9, 2018. Both concessions will be operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession partners.

ADNOC CEO and UAE Minister of State Sultan Al Jaber stated “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 has been striking deals with a variety of international oil firms as it divides up portions of its offshore holdings as previous long-standing deals expire.

An investment group headed by India’s Oil and Natural Gas Corporation, Japan’s INPEX and Spain’s Cepsa have all been awarded separate stakes in different areas of the offshore concession in recent weeks.

ADNOC is still negotiating the sale of the remaining 15% in the Lower Zakum concession and 30% of the the Umm Shaif and Nasr concessions. ADNOC will keep a majority holding in both blocks.

Austrian energy firm OMV has been widely slated as being on the brink of acquiring a stake.


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