French oil and gas company Total S.A. (TOT, TTFNF,TTA.L) has inked a new 40-year onshore concession agreement with the Supreme Petroleum Council of the Emirate of Abu Dhabi (United Arab Emirates) and the Abu Dhabi National Oil Company or ADNOC, granting Total a 10% participating interest effective January 1, 2015. The concession includes the fifteen principal onshore oil fields of Abu Dhabi and represents more than half of the Emirate's production.
"Total's entry into the new ADCO concession is a major milestone in the history of the Group's 75-year partnership with the Emirate of Abu Dhabi. We are committed to bringing our most advanced technological expertise to unlock the full production potential of Abu Dhabi's onshore fields and therefore contribute to the development of additional reserves over the next 40 years," explained Patrick Pouyanné, Chief Executive of Total.
The new concession would be operated by the Abu Dhabi Company for Onshore Petroleum Operations Ltd. or ADCO, a new operating company in which Total will be a 10% stakeholder. Total has also been appointed Asset Leader for the Bu Hasa and Southeast fields, which represent about two-thirds of ADCO's production.
In 2015, ADCO's expected production is around 1.6 million barrels of oil per day (Mb/d), with an objective to increase output to 1.8 Mb/d from 2017.
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