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ADNOC furthers concession split, ups partnership model
Abu Dhabi National Oil Co. (ADNOC) is working to boost oil
production to 3. 5 million b/d in 2018 with offshore development being its primary focus.
The company announced in July that it is expanding its
partnership model to open more concession opportunities. The
new approach targets market access, long-term capital, and
technological expertise to deliver growth. Abu Dhabi Marine
Operating Co. (ADMA-OPCO) operates Abu Dhabi’s offshore
concession, which expires in March 2018, and ADNOC is in
advanced discussions with more than a dozen potential partners who have expressed an interest, including a mix of existing concession holders in ADNOC’s offshore fields and new
participants. ADMA-OPCO produces 700,000 b/d of oil, and is
expected to increase production to 1 million b/d by 2021.
The existing ADMA-OPCO concession will be split into
two or more new concessions with new terms and will be comprised of a mix of Lower Zakum, Umm Shaif, Nasr, Umm Lulu,
and Satah Al Razboot (SARB) fields. ADNOC will retain 60%
interest in the new concession areas.
ADNOC announced in 2016 its effort to consolidate ADMA-OPCO offshore operations and Zakum Development Co. (
ZADCO). The new ADMA-OPCO concessions and the existing Upper Zakum concession, operated by ZADCO, will be operated
by the new integrated offshore company. The consolidation of
the two companies is due to be completed before yearend.
The company said expansion of its partnership model is
part of its “ADNOC 2030” strategy, which envisions higher oil
production capacity and innovation in enhanced oil recovery,
expansion of petrochemical production to 11. 4 million tonnes/
year by 2025 from the current 4. 5 million tpy, and further development of natural gas resources.
Existing shareholders in ADMA-OPCO are BP PLC 14.67%,
Total SA 13.33%, and Japan Oil Development Co. (JODCO)
12%. The international shareholders in ZADCO are ExxonMobil Corp. 28% and JODCO 12%. The Abu Dhabi government,
through ADNOC, has a 60% interest in both operating companies.
NNPC gets financing for Chevron, Shell JVs
Nigerian National Petroleum Corp. has signed agreements with
joint ventures led by Chevron Corp. and Royal Dutch Shell PLC
accommodating third-party financing of its cash commitments
for oil and gas development.
The agreement involving the NNPC-Chevron Nigeria Ltd.
JV covers $780 million remaining to fund development of Sonam natural gas field, in which Chevron Nigeria has invested
$1.5 billion. Chevron expects the shallow-water project, tied
to the Escravos gas plant, to produce 215 MMcfd of gas and
30,000 b/d of liquids.
Of the amount in the agreement, $380 million will cover
NNPC’s 2016 cash commitment. The rest will support drilling
of seven wells in Sonam field on Oil Mining License (OML) 91
and the Okan 30E nonassociated gas well on OML 90 as well as
completion of associated facilities.
The other agreement, with third-party financing totaling $1
billion, will allow the NNPC-Shell Petroleum Development Co.
JV to conduct 156 “development activities” in 30 fields over 12
OMLs in the Niger Delta, NNPC said.
A first phase of the work will include 128 “rigless activities”
and 10 workovers. A second phase will further develop EA and
EJA shallow-water fields with the drilling of 14 wells and the
workover of 3 wells.
Rockliff, Samson ink Texas-Louisiana deal
Privately held Rockliff Energy II LLC, Houston, has agreed to
buy the East Texas and North Louisiana properties of Samson
Resources II LLC, Tulsa, for $525 million.
The deal covers 210,000 net acres producing a net 90 MMcfd
of natural gas equivalent.
Samson Resources II acquired the assets of Samson Resources Corp. out of bankruptcy.
It said it will focus on developing its Wyoming leasehold,
146,000 net acres in the Powder River basin and 59,000 net
acres in the Green River basin, “and will explore a number of
strategic and development opportunities.”
Pacific Drilling says bankruptcy possible
Pacific Drilling SA, Luxembourg, stung by lingering problems
in the deepwater oil and gas industry, raised the possibility of
bankruptcy in its report of second-quarter financial results.