ExxonMobil takes 28% of Upper Zakum oil field

March 28, 2006
ExxonMobil Corp. has signed an agreement to acquire a 28% equity interest in giant Upper Zakum oil field off Abu Dhabi from Abu Dhabi National Oil Co. (ADNOC).

By OGJ editors
HOUSTON, Mar. 28 -- ExxonMobil Corp. has signed an agreement to acquire a 28% equity interest in giant Upper Zakum oil field off Abu Dhabi from Abu Dhabi National Oil Co. (ADNOC).

ADNOC retains a 60% interest in the field and Japan Oil Development Co. (Jodco), 12%. Upper Zakum is one of the world's largest oil fields.

"ExxonMobil, with ADNOC and Jodco, will provide support to the joint operating company, Zakum Development Co., to increase production to a target of 750,000 b/d after all technical studies are completed," ExxonMobil said in a statement. The field's current production capacity is 550,000 b/d.

The project is part of the United Arab Emirates' plans to raise production to 3.5 million b/d by 2012 from 2.7 million b/d now. The UAE recently added 200,000 b/d of capacity. Abu Dhabi dominates UAE production.

ExxonMobil, which will hold the interest through ExxonMobil Abu Dhabi Offshore Petroleum Co., was selected in April 2005 for exclusive talks on developing Upper Zakum (OGJ Online, Apr. 7, 2005). ADNOC said the expiry date of the interests of ExxonMobil and Jodco in Upper Zakum would be Mar. 9, 2026.