UAE’s ADNOC to consolidate two key offshore oil firms
Plan is to boost output potential of the entity to around 1.6 mln bpd in 2017-18
Abu Dhabi National Oil Co (ADNOC) said on Tuesday it planned to consolidate the operations of two of its offshore oil companies into a new entity, as part of a bigger restructuring of the OPEC member’s main energy firm in the era of cheap oil.
The consolidation of Abu Dhabi Marine Operating Co (ADMA-OPCO) and Zakum Development Co (ZADCO) “aimed at capitalising on synergies to drive operational efficiency and maximise value,” ADNOC said in a statement.
“The new company resulting from this integration will be more agile, better able to respond to changing market demands, and be well positioned to take advantage of strategic opportunities for future growth.”
Current production for the ADMA-OPCO and ZADCO offshore oil fields is around 1.2 million barrels per day and ADNOC’s plan is to boost output potential to around 1.6 million bpd in 2017-18.
The UAE currently produces about 3.2 million bpd.
The consolidation comes after ADNOC reshuffled its leadership in May, the first major shake-up since the
appointment of Sultan Al Jaber as chief executive earlier this year.
The sharp drop in crude prices since mid-2014 has forced the oil industry to become more efficient amid tough competition.
“With ADNOC’s recent focus on driving efficiency, performance and profitability ... the consolidation of ADMA-OPCO and ZADCO is a logical step,” said Al Jaber, who is also UAE Minister of State, in the statement.
A steering committee will be formed by ADNOC and its joint venture partners - BP, ExxonMobil, Japan Oil
Development Company (JODCO) and Total - to oversee the integration.
Yaser al-Mazrouei, current chief executive of ADMA-OPCO, will be joint chief executive of ADMA-OPCO and ZADCO. The consolidation is expected to conclude by early 2018, ADNOC said.
“The existing concession rights of our partners in the concessions currently operated by ADMA-OPCO and ZADCO will not be affected by the consolidation,” Al Jaber said.
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