Bloomberg News

U.A.E.’s Adnoc to Invite Bids for Onshore Oil Concessions

January 16, 2012

(Updates with concession details in second paragraph.)

Jan. 16 (Bloomberg) -- Abu Dhabi National Oil Co., the state producer in the capital of the United Arab Emirates, will invite companies including current partners to bid for onshore oil-field concessions, Director General Abdulla Nasser Al Suwaidi said.

“We are in final process of screening qualified companies,” he told reporters today at a conference in Abu Dhabi. Adnoc, as the company is known, will decide whether to award the concessions as a group or as 3 or 4 separate fields, he said. “We have options.”

Adnoc owns 60 percent of Abu Dhabi Co. for Onshore Oil Operations, or ADCO, with Exxon Mobil Corp., Royal Dutch Shell Plc, BP Plc, Total SA and Partex Oil & Gas holding the rest.

Exxon Mobil, Shell and BP produce oil at onshore fields in Abu Dhabi under a concession agreement that dates back to 1939. The fields began commercial production in 1960 and Abu Dhabi’s state-run oil company joined as a partner in the 1970s, forming ADCO, which holds the concession for six main onshore fields until 2014.

Exxon Mobil, the world’s biggest company by market value, expects Abu Dhabi to change the terms for the Persian Gulf emirate’s main oil producing concession when the current agreement expires in 2014, Chief Executive Officer Rex Tillerson said Dec. 6.

Abu Dhabi holds more than 90 percent of crude in the U.A.E., one of the few Middle East states that allow foreign companies to explore for and produce oil within its borders.

--With assistance from Nayla Razzouk. Editors: Rachel Graham, Raj Rajendran

To contact the reporter on this story: Anthony DiPaola in Abu Dhabi at adipaola@bloomberg.net;

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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