Abu Dhabi National Oil Company (ADNOC) is set to integrate operations of two offshore oil firms, Abu Dhabi Maine Operating Company (aka ADMA-OPCO) and ZADCO.
The company said the integration will enable “efficiencies and synergies” across the multiple ADMA-OPCO and ZADCO offshore concessions and fields, including Zakum, the largest offshore field in the world in terms of reserves.
H.E. Dr. Sultan Al Jaber, UAE Minister of State and CEO of the ADNOC Group, said: “The consolidation will facilitate enhanced operational performance while providing strategic benefits for future growth and advanced technology integration. Importantly, it will unite our offshore experience, streamline governance and decision making, and give management a better line of sight through the company’s operations.
“Consolidating the two companies into a single new entity responsible for operating the associated concessions will also help fulfill the ADNOC Group’s strategic imperative of creating a more profitable upstream business—benefiting both ADNOC and its partners,” added Dr. Al Jaber.
BP, ExxonMobil, Japan Oil Development Company (JODCO) and Total, the international partners in the operating companies, are working together with ADNOC through the integration phase.
A steering committee will be formed by ADNOC and its JV partners to oversee the integration. Yaser Al Mazrouei, CEO of ADMA-OPCO, is being appointed as the joint CEO of ADMA-OPCO and ZADCO and will work closely with the committee. ADNOC said the consolidation process is projected to be concluded by early 2018.
Once the integration of ADMA-OPCO and ZADCO is complete, the new offshore operating company will operate the associated offshore concessions.
“The existing concession rights of our partners in the concessions currently operated by ADMA-OPCO and ZADCO will not be affected by the consolidation. Looking ahead, ADNOC will continue to review and consider all options, and pursue partners for concessions expiring in 2018,” added Dr. Al Jaber.
ADNOC has a 60% share in ADMA-OPCO. The remaining shares are held by BP, JODCO, and Total. ADNOC holds a 60% share in ZADCO, while the remaining shares are held by ExxonMobil and JODCO.