A steering committee formed by Abu Dhabi National Oil Co. (ADNOC) will oversee merger of the company’s two main offshore operating companies, Abu Dhabi Marine Operating Co. (ADMA-OPCO) and Zakum Oil Development Co. (ZADCO).
ADNOC’s announcement of the merger did not specify how international ownership would be reconciled. ADNOC holds 60% interests each in ADMA-OPCO and ZADCO.
Holding other interests in ADMA-OPCO are BP PLC, Total SA, and Japan Oil Development Co. (JODCO). ExxonMobil Corp. and JODCO hold interests in ZADCO.
ADMA-OPCO produces about 650,000 b/d of crude oil from Lower Zakum, Umm Lulu, Nasr, and Umm Shaif fields in the Persian Gulf.
It processes crude oil and associated natural gas on Das Island.
ZADCO is raising production capacity of its main field, Upper Zakum, to 750,000 b/d from 550,000 b/d and aims to sustain the expanded level for 25 years. It also produces crude a lower rates from Umm Al-Dalkh and Satah fields.
ZADCO processes crude on Zirku Island. Its associated gas flows to Das Island.
Consolidation of the companies is to be completed by early 2018.
Yaser Al Mazrouei, ADMA-OPCO chief executive officer, will be CEO of the combined company.
Sultan bin Ahmad Sultan Al Jaber, minister of state and ADNOC chief executive officer, said the consolidation wouldn’t affect existing concession rights of the operating company partners.
“ADNOC will continue to review and consider all options and pursue partners for concessions expiring in 2018,” he said.
