ADNOC Signs Major Offshore Concession Agreements with Total as it Embarks on Giant Gas Cap Development

ABU DHABI, UAE, March 18, 2018 /PRNewswire/ --

Total contributes AED 5.3 billion participation fees for stakes in Umm Shaif and Nasr, and Lower Zakum concessions  

Oil and gas major will play a critical role in supporting the development of Umm Shaif's giant gas cap, as ADNOC drives a more sustainable and economic gas supply 

40-year agreements support ADNOC's long-term growth plans and strategy to enhance cooperation across the value chain 

Deal strengthens the relationship between ADNOC and Total, one of Abu Dhabi's longest international oil and gas partners, with interests across the value chain 

The Abu Dhabi National Oil Company (ADNOC) today signed agreements with Total of France, awarding them stakes in two of Abu Dhabi's new offshore concessions. Under the terms of the agreements, Total has been awarded a 20% interest in the Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession. The signing took place at the Abu Dhabi Louvre, a cultural landmark and powerful symbol of the bi-lateral relationship between the United Arab Emirates and France.

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Total is ADNOC's largest and one of its longest international partners, active in Abu Dhabi's oil and gas sector since 1939. Today, the French super-major collaborates with ADNOC across the value chain, from offshore and onshore exploration, development and production, to processing, products and shipping.

Total contributed a participation fee of AED 4.2 billion (US $1.15 billion) to enter the Umm Shaif and Nasr concession and a fee of AED 1.1 billion (US $300 million) to enter the Lower Zakum concession. Both concessions are operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession partners.

The agreements, which have a term of 40 years and an effective date of March 9, 2018, were signed by His Excellency Dr Sultan Ahmed Al Jaber, ADNOC Group Chief Executive Officer, and Patrick Pouyanné, Chairman and CEO of Total.

H.E. Dr Al Jaber said: "For over 75 years Total has partnered with Abu Dhabi in the development of our oil and gas resources and has closely collaborated with ADNOC across various stages of our value chain. Today's announcement marks an important step to further strengthen our value-adding partnership with one of the world's largest integrated upstream and downstream companies.