International firms have taken strong fascination to Abu Dhabi to take part in its oilfields as it keeps its affiliation with Western Oil Conglomerate and letting buyers from Asian companies to take stakes.
Abu Dhabi National Oil Company (ADNOC) dominated the largest oilfields in the UAE when its project with four of the world’s largest oil companies for decades ended on January 11.
By 2017, ADNOC is said to produce 3.5 million barrels per day export capacity from its largest onshore oilfields.
Abu Dhabi and the western oil majors have been in partnership since decades but several Asian energy companies are also taking interest to take stakes in fields that mostly supply oil to the Asian market. These would be a great opportunity for UAE to build up political ties with its primary and biggest oil importer such as Korea, Japan and China.
According to the agreement, 60% of the stake was given and held by ADNOC in the Abu Dhabi Company for Onshore Oil Operations (ADCO) oilfields, on the other hand, Royal Dutch Shell, ExxonMobil, BP and Total held 9.5% of stakes each.
The oil minister of UAE said that there several companies, together with those whose acknowledgment has been expressed eagerness to participate.
Furthermore, the criteria that ADNOC announced was based on technology for the reason that they are expecting that the challenges that they will face for the venture will be different compared to what they had encountered when they started.
Abu Dhabi, being a member of the Organization of Petroleum Exporting Countries (OPEC) permits oil and gas service providers and producers to acquire equity in hydrocarbon resources. ADCO’s estimated production is 1.6 million barrels per day (bpd). The Gulf nation has the capacity to create 3 million barrels per day (bpd) and as of now currently producing 2.8 million bpd.
The minister also announced the expansion of Ruwais refinery of Abu Dhabi Oil Refining Co. (Takreer) which will be completed by the end of 2014 was revised to be completed in the first quarter of 2014.