Eni signed yesterday two concessions in Abu Dhabi for entry with a share of 5% in the oil field of Lower Zakum and with a share of 10% in the oil, condensate and gas fields of Umm Shaif and Nasr, in offshore of the country, for a consideration of about 875 million dollars total and a duration of 40 years.
The signing ceremony was attended by the Hereditary Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan, and the Italian Prime Minister, Paolo Gentiloni, as well as the CEO of the state company ADNOC, Sultan Ahmed Al Jaber, and the Administrator Delegate of Eni, Claudio Descalzi.
These agreements represent a strategic move for Eni to enter a country with one of the largest reserves of hydrocarbons in the world.
Lower Zakum is located offshore about 65 kilometers offshore from Abu Dhabi. The discovery dates back to 1963 and production started in 1967, with a production target of 450 thousand barrels of oil per day. Umm Shaif and Nasr are located in offshore about 135 kilometers from the coast of Abu Dhabi and have a target production of 460 thousand barrels of oil per day.
Eni's Chief Executive Officer, Claudio Descalzi, commented: "I am very happy with this agreement that gives us the opportunity to expand our presence in the Middle 1
East, in line with our expansion strategy, and to create a strong alliance with ADNOC and Abu Dhabi. The two concessions give access to giant deposits with enormous potential and Eni wants to contribute to the maximization of future production with its best technology ».
The CEO of ADNOC, Al Jaber, said: "These agreements highlight the confidence of the international market in the long-term growth plans of ADNOC and in the United Arab Emirates as a stable and reliable environment to invest in. In addition, they expand and diversify our partnerships, while contributing to gaining experience, technology, access to capital and the market.
Our partnership with Eni, as well as with other concession partners, will allow us to accelerate our growth, increase revenue and improve integration along the value chain in the Upstream, as part of our ongoing transformation, and further grow the foundations that have been laid to deliver a more profitable Upstream business. With these agreements, ADNOC continues to leverage its heritage of 46 years of successful partnerships in the energy sector, in support of its 2030 strategy ».
In both concessions ADNOC owns a share of 60%. The operator is ADNOC Offshore.