OVL group acquires 10% Lower Zakum stake

A group of state-owned Indian companies led by ONGC Videsh has bought a 10% interest in the Lower Zakum Concession offshore Abu Dhabi for $600 million. The deal, representing the first acquisition by Indian companies of a stake in the emirate’s hydrocarbon resources, emerged during a visit to Abu Dhabi by Indian Prime Minister Narendra Modi.

A group of state-owned Indian companies led by ONGC Videsh Ltd. has bought a 10% interest in the Lower Zakum Concession offshore Abu Dhabi for $600 million.

The deal, representing the first acquisition by Indian companies of a stake in the emirate’s hydrocarbon resources, emerged during a visit to Abu Dhabi by Indian Prime Minister Narendra Modi.

Abu Dhabi National Oil Co. operates and holds a 60% interest in the concession, carved out of the concession formerly held by Abu Dhabi Marine Operating Co. (ADMA-OPCO), now part of ADNOC Offshore.

Other members of the Indian consortium are Indian Oil Corp. Ltd. and the international arm of Bharat Petroleum Corp. Ltd.

Lower Zakum field produces about 400,000 b/d of oil. Production is to climb to 450,000 b/d by 2025.

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