State-owned Abu Dhabi National Oil Co (ADNOC) signed on Saturday an agreement awarding a consortium led by India’s Oil and Natural Gas Corporation (ONGC) a 10 percent stake in the new Lower Zakum offshore concession, for a participation fee of AED 2.2 billion ($600 million).
Effective as of March 9, the 40-year deal marks the first time an Indian company is given a stake in Abu Dhabi's hydrocarbon resources, ADNOC said in a statement.
ADNOC has split the existing concession, which is run by Adma-Opco and due to expire in March, into three areas in order to increase strategic partnerships and market outreach.
The ONGC consortium was given a 10 percent stake in the Lower Zakum concession. The second concession covers the Umm Shaif and Nasr fields, while the third covers the Satah Al-Razboot and Umm Lulu fields.
This deal is part of ADNOC’s strategy to boost total production capacity to 3.5 million barrels per day by the end of 2018, from 1.4 million barrels per day.
Meanwhile, the oil giant is studying potential deals for the remaining 30 percent of the available 40 percent stake in the Lower Zakum offshore concession.
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