The Abu Dhabi National Oil Company (Adnoc) has signed two historic agreements awarding Italy's multinational oil and gas company Eni stakes in two of Abu Dhabi's offshore concession areas.
The signing was witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Paolo Gentiloni, Prime Minister of Italy.
The awards mark the first time an Italian energy company has been given concession rights in Abu Dhabi's oil and gas sector.
Under the terms of the agreements, Eni has been awarded a 10 per cent interest in the Umm Shaif and Nasr concession and a 5 per cent interest in the Lower Zakum concession.
Prime Minister Gentiloni underscored the importance of the agreements between Eni and Adnoc as a significant confirmation of the strategic partnership between Italy and the UAE and as a fundamental milestone for further enhancing the excellent bilateral cooperation among the two countries.
Eni contributed a participation fee of Dh2.1 billion ($575 million) to enter the Umm Shaif and Nasr concession and a fee of Dh1.1 billion ($300 million) to enter the Lower Zakum concession.
Both concessions will be operated by Adnoc Offshore, a subsidiary of Adnoc, on behalf of all concession partners.
The agreements, which have a term of 40 years, backdated to March 9, 2018, were signed by Dr Sultan Ahmed Al Jaber, Adnoc Group Chief Executive Officer, and Claudio Descalzi, CEO of Eni.
Dr Al Jaber said: "These agreements underline the international market's confidence in Adnoc's long-term growth plans and the UAE's stable and reliable investment environment. They also broaden and diversify our partnership base while contributing experience, technology, capital and market access.
"Our partnership with Eni, and other concession partners, will enable us to accelerate our growth, increase revenue and improve integration across the upstream value chain, as part of our ongoing transformation and build on the foundations that have been laid to deliver a more profitable upstream business.
"With these agreements, Adnoc continues to leverage its 46-year legacy of successful energy partnerships, in support of its 2030 strategy. They will enhance its ability to capitalise on key trends that are driving growing energy demand and ensure Adnoc continues to deliver long-term, robust and sustainable returns for the nation's benefit," Dr Al Jaber added.
Eni is active in 73 countries and has operations both upstream and downstream.
Descalzi said: "Eni is committed to apply its experience in the development and production of world-class oil and gas resources, as well as Eni's technology portfolio, in support of Adnoc's objectives to cost-effectively increase production capacity, efficiently manage the concessions' assets and sustain the plateau through targeted enhanced oil recovery programs, at competitive cost.
"Eni also believes further collaboration with Adnoc in the downstream would create synergies, bringing mutual benefits from capital, resources and knowledge sharing, and would create significant added value to Adnoc's refining assets."
The Umm Shaif and Nasr, and Lower Zakum concessions, along with the SARB and Umm Lulu concession areas, have been created from the former ADMA offshore concession, with the aim of maximising commercial value, broadening the partner base, expanding technical expertise, and enabling greater market access.
Eni joins an Indian consortium, led by ONGC Videsh, and Japan's Inpex as stakeholders in the Lower Zakum concession. Adnoc is finalising opportunities, with potential partners, for the remaining 15 per cent of the available 40 per cent stake in the Lower Zakum concession, and for the remaining 30 per cent stake in the Umm Shaif and Nasr concession. Adnoc retains a 60 per cent share in both concessions.