ExxonMobil signs off Abu Dhabi oil field deal
ExxonMobil signs off Abu Dhabi oil field deal
The Daily Star Middle East | Daily Star Staff
Beirut
ABU DHABI: The Supreme Petroleum Council (SPC) and Abu Dhabi National Oil Company (ADNOC) signed agreements with ExxonMobil Corporation and subsidiaries covering participation in Upper Zakum Oil Field, located in the offshore areas of Abu Dhabi.
Under the agreements, ExxonMobil Abu Dhabi Offshore Petroleum Company Limited gains ownership of 28 percent out of ADNOC's 88 percent equity stake in the Upper Zakum reservoirs effective January 1, 2006, while Japan Oil Development Company (JODCO) will continue to hold the remaining 12 percent interest in the Zakum Field, according to a statement issued by ADNOC.
The SPC selected ExxonMobil in April 2005 among competing reputable international companies for submitting the best technical offer.
Under the revised development agreement, which is amended to reflect the necessary changes arising from the entry of ExxonMobil, the expiry date of the interests of ExxonMobil and JODCO in the Zakum Field is set forth as March 9, 2026.
Upper Zakum is one of the world's largest fields, contributing significantly to Abu Dhabi's current production, and with potential for substantial production growth. ExxonMobil, with ADNOC and JODCO, will provide support to the joint operating company, Zakum Development Company (ZADCO), in pursuing the objective of increasing production to a target of 750 thousand barrels per day, once all the technical studies are completed.
ExxonMobil has committed to develop, supply, support and apply cutting edge technology to maximize recovery from the Upper Zakum reservoirs. The company will establish an ExxonMobil Technology Center in Abu Dhabi to apply the industry's most advanced technology to Upper Zakum in areas of reservoir management, well management and production operations.
The company will also provide support for training and personnel development, including access to its Technology Center in Houston. ExxonMobil agreed to assist in establishing a specialized research and development facility at the Petroleum Institute, the leading technical university in Abu Dhabi.
Youssef Omar bin Youssef, SPC secretary general and CEO of ADNOC, said: "While welcoming ExxonMobil to this successful joint venture, the SPC, and ADNOC are convinced that with its wealth of expertise and state-of-the-art technology, ExxonMobil's partnership will further consolidate the firm foundation laid by the existing team of JODCO and ZADCO. We believe all partners will benefit from this lucrative venture. The agreements also reflect the standing policy of the SPC and ADNOC on strengthening strategic partnerships with their industrial shareholders."
"ExxonMobil is deeply honored to have this opportunity to participate in the Upper Zakum Field," said Rex Tillerson, chairman and CEO of ExxonMobil Corporation. "We look forward to joining the already strong ZADCO team and to supplementing and enhancing the technology and capabilities of ZADCO and its shareholders. We look forward to cooperating closely with ADNOC," he added.
JODCO said that as a long-standing partner in the Field, they looked forward to cooperating with ADNOC and ExxonMobil to establish a solid partnership to increase production capacity and ultimate economic recovery factor from the Field. - WAM
The Daily Star Middle East | Daily Star Staff
Beirut
ABU DHABI: The Supreme Petroleum Council (SPC) and Abu Dhabi National Oil Company (ADNOC) signed agreements with ExxonMobil Corporation and subsidiaries covering participation in Upper Zakum Oil Field, located in the offshore areas of Abu Dhabi.
Under the agreements, ExxonMobil Abu Dhabi Offshore Petroleum Company Limited gains ownership of 28 percent out of ADNOC's 88 percent equity stake in the Upper Zakum reservoirs effective January 1, 2006, while Japan Oil Development Company (JODCO) will continue to hold the remaining 12 percent interest in the Zakum Field, according to a statement issued by ADNOC.
The SPC selected ExxonMobil in April 2005 among competing reputable international companies for submitting the best technical offer.
Under the revised development agreement, which is amended to reflect the necessary changes arising from the entry of ExxonMobil, the expiry date of the interests of ExxonMobil and JODCO in the Zakum Field is set forth as March 9, 2026.
Upper Zakum is one of the world's largest fields, contributing significantly to Abu Dhabi's current production, and with potential for substantial production growth. ExxonMobil, with ADNOC and JODCO, will provide support to the joint operating company, Zakum Development Company (ZADCO), in pursuing the objective of increasing production to a target of 750 thousand barrels per day, once all the technical studies are completed.
ExxonMobil has committed to develop, supply, support and apply cutting edge technology to maximize recovery from the Upper Zakum reservoirs. The company will establish an ExxonMobil Technology Center in Abu Dhabi to apply the industry's most advanced technology to Upper Zakum in areas of reservoir management, well management and production operations.
The company will also provide support for training and personnel development, including access to its Technology Center in Houston. ExxonMobil agreed to assist in establishing a specialized research and development facility at the Petroleum Institute, the leading technical university in Abu Dhabi.
Youssef Omar bin Youssef, SPC secretary general and CEO of ADNOC, said: "While welcoming ExxonMobil to this successful joint venture, the SPC, and ADNOC are convinced that with its wealth of expertise and state-of-the-art technology, ExxonMobil's partnership will further consolidate the firm foundation laid by the existing team of JODCO and ZADCO. We believe all partners will benefit from this lucrative venture. The agreements also reflect the standing policy of the SPC and ADNOC on strengthening strategic partnerships with their industrial shareholders."
"ExxonMobil is deeply honored to have this opportunity to participate in the Upper Zakum Field," said Rex Tillerson, chairman and CEO of ExxonMobil Corporation. "We look forward to joining the already strong ZADCO team and to supplementing and enhancing the technology and capabilities of ZADCO and its shareholders. We look forward to cooperating closely with ADNOC," he added.
JODCO said that as a long-standing partner in the Field, they looked forward to cooperating with ADNOC and ExxonMobil to establish a solid partnership to increase production capacity and ultimate economic recovery factor from the Field. - WAM
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