ONGC acquires 10% stake in UAE’s oil offshore concession
Abu Dhabi: India and the UAE right now signed a concessional settlement awarding a consortium of Indian oil corporations, led by the ONGC, a 10 p.c stake in Abu Dhabi’s offshore oil concession, the primary such deal for the Indian oil and gasoline corporations within the Gulf nation.
Prime Minister Narendra Modi, Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan and Deputy Supreme Commander of the UAE Armed Forces witnessed the signing of the historic settlement.
The MoU between Indian Consortium (OVL, BPRL & IOCL) and state-run Abu Dhabi Nationwide Oil Firm (ADNOC) was signed for the acquisition of 10 p.c taking part curiosity within the offshore Decrease Zakum Concession.
The concession might be for 40 years from 2018 to 2057. Sixty p.c of the taking part curiosity might be retained by ADNOC and remaining 30 p.c might be awarded to different worldwide oil corporations.
That is the primary Indian funding within the upstream oil sector of the UAE, remodeling the standard buyer-seller relationship to a long-term investor relationship. Decrease Zakum is certainly one of three new separate concession areas that make up the previous ADMA offshore concession, specifically Decrease Zakum, Umm Shaif and Nasr and Sateh Al Razboot (SARB) and Umm Lulu.
Talking on the signing of the settlement, Prime Minister Modi stated, “The offshore concession in favour of the Indian consortium has taken our bilateral engagement within the oil and gasoline sector to a brand new stage, which befits the excellent strategic partnership between our two nations.”
“I’m completely satisfied to notice that we’ve got progressed from a buyer-seller relationship to an period of mutual investments within the oil and gasoline sector,” he stated.
The consortium, led by India’s ONGC Videsh, contributed a participation charge of AED 2.2 billion ($600 million) to enter the concession.
The concession might be operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession companions.
The settlement, which has a time period of 40 years and an efficient date of March 9, 2018, was signed by Sultan Ahmed Al Jaber, ADNOC Group Chief Govt Officer, and member of Abu Dhabi’s Supreme Petroleum Council and Shashi Shanker, Chairman, ONGC Group of corporations.
“Our strategic partnership with ONGC, and the opposite members of the consortium, marks a brand new chapter within the strategic and financial relationship between the UAE and India.
“This mutually useful partnership will assist India meet its rising demand for power and refined merchandise, create alternatives for ADNOC to extend its market share in a key development market, and construct a strong basis as ADNOC explores potential worldwide investments, significantly centered on downstream alternatives,” stated Al Jaber, who can also be Minister of State within the UAE.
“This settlement demonstrates the arrogance of the worldwide market in ADNOC’s long-term manufacturing targets and ADNOC’s technique to maximise financial worth and restoration from its offshore oil and gasoline sources. That is a lovely and strategic settlement for each events that can ship aggressive returns and long run development alternatives.”
The Indian consortium is made up of ONGC’s wholly-owned subsidiary ONGC Videsh, which has stakes in 39 oil and gasoline tasks, in 18 nations; the Indian Oil Company, India’s largest business enterprise, encompassing the whole hydrocarbon worth chain.