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Adnoc, Exxon eye new JV deals

Abu Dhabi National Oil Company (Adnoc) said on Tuesday it is exploring new opportunities with Exxon Mobil Corporation as work progressed on a $30 billion joint project aimed at boosting production capacity at Upper Zakum, the world's second-largest offshore oilfield.
The Upper Zakum project, known as UZ750, is crucial to Adnoc's plans to raise production capacity to four million bpd by 2020 and five million bpd by 2030. The project, which is estimated to see an investment of around $21.8 billion, comprises four new artificial islands to accommodate drilling rigs, processing facilities and infrastructure.
Adnoc holds a 60 per cent stake in the concession while the US company, has 28 per cent interest and the Japan Oil Development Company has the remaining stake.
The state-owned oil giant said it is leveraging mutually beneficial partnerships to drive new commercial opportunities and expand its portfolio across the upstream and downstream sectors.
Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of Adnoc, and Darren W. Woods, Chairman and CEO of ExxonMobil, met recently to explore new opportunities for collaboration in the upstream and downstream sectors, and discussed wider regional and business-related developments.
"Our existing partnership with ExxonMobil on the Upper Zakum field is a prime example of how Adnoc engages with world-class partners that bring expertise and advanced technology to unlock value from our resources, for mutual benefit, and deliver the greatest possible returns to the UAE. We are keen to strengthen this strategic partnership across the entire value chain, as we accelerate delivery of our 2030 smart growth strategy," said Dr Al Jaber.
Al Jaber and Woods also discussed the new substantial conventional and unconventional oil and gas exploration opportunities in Abu Dhabi, following Adnoc's announcement last week to offer five major offshore and onshore blocks for competitive bidding.
The Upper Zakum oilfield, located offshore Abu Dhabi, is the second-largest offshore oilfield and the fourth-largest oilfield in the world.
Adnoc has a strong track record of energy cooperation with US companies across its entire value chain, and this has strengthened in recent months.
In October 2018, Baker Hughes, a GE company, acquired a five percent stake in Adnoc's subsidiary, Adnoc Drilling, in a transaction that valued the company at approximately $11 billion. In addition, in February this year, Adnoc signed an agreement awarding Occidental Petroleum an onshore block following Abu Dhabi's first-ever competitive exploration bid round. Adnoc also collaborates with Occidental in onshore sour gas production and processing through Adnoc Sour Gas, a joint venture company in which Adnoc owns a 60 percent share and Occidental owns a 40 percent share.
- issacjohn@khaleejtimes.com