On behalf of the Abu Dhabi Government, the Abu Dhabi National Oil Company (ADNOC) today signed a contract with Cepsa, a Spanish integrated oil and gas company, granting it a 20% stake in Abu Dhabi's offshore SARB and Umm Lulu concession.

The choice of Cepsa, which is wholly-owned by Abu Dhabi's Mubadala Investment firm and operates throughout the whole oil and gas worth chain, underpins ADNOC's method to take full advantage of returns from its resources, expand its Downstream business, and retain worth for the UAE.

The concession area is made up of 2 primary fields under advancement, Umm Lulu, which becomes part of the previous ADMA offshore concession, and SARB, along with two smaller fields, Bin Nasher and Al Bateel. The ADMA concession has actually been divided right into three new giving ins to maximise business value, expand ADNOC's partner base, broaden technological experience, and allow greater market accessibility.

Cepsa contributed an participation fees of AED 5.5 billion ($ 1.5 billion) to get in the concession, which also takes into consideration previous ADNOC investments in the concession location. ADNOC investments a bulk 60% risk in the concession that will certainly be run by ADNOC Offshore, a subsidiary of ADNOC.

The agreement, which has a regard to 40 years and an efficient day of March 9, 2018, was authorized by His Excellency Dr Sultan Ahmed Al Jaber, ADNOC Group Ceo, and Pedro Mir, Vice Chairman and Chief Executive Officer of Cepsa.

H.E. Dr Al Jaber said: "This long-term arrangement is a landmark in the development of Abu Dhabi's incorporated oil and gas field and in the distribution of ADNOC's 2030 smart development method. This partnership guarantees we continuously increase worth from our hydrocarbon sources, according to the management's directives, by catching that value and financial return right here in the UAE.

" The agreement also shows ADNOC's new partnership method, as we expand and diversify our partner base across ADNOC's incorporated value chain. Reflecting our calculated strategy, we are likewise working with Cepsa to discover expansion opportunities in our downstream business, in the UAE and overseas, that will provide competitive returns and long-term growth possibilities for both celebrations, and for the UAE."

Cepsa, which has been operating in the energy field because 1929, has services in over 20 nations across five continents. Its procedures extend exploration, production, refining, circulation and advertising and marketing, chemicals, gas and power, trading, bunkering and renewable resource sources. It is the world's largest producer of Linear Alkyl Benzene (LAB) as well as the leading manufacturer of cumene and the 2nd in phenol and acetone, thanks to its 7 chemical plants, in Europe, Asia and the Americas. In 2016 it produced 35.4 million barrels of oil, distilled 158.7 million barrels of crude oil and sold 28.3 million tons of oil products.

Miro said: "This concession agreement notes a crucial minute for Cepsa and our close relationship with ADNOC, with whom we are dealing with on a variety of jobs in the upstream, downstream and petrochemical sectors. It will add substantial reserves, in a concession with relatively low production price, to our portfolio, and will certainly allow us to make considerable strides to accomplishing our objectives, as laid out in our 2030 Strategic Plan".

In November 2017, ADNOC and Cepsa signed a framework agreement to examine a new world-scale Linear Alkyl Benzene facility in Ruwais, Abu Dhabi. LAB is one of the most common resources in the manufacture of biodegradable family and commercial detergents. It is also made use of in housekeeper, material softeners, and soap bars.

The companies plan to advance the basic engineering of the recommended LAB complex in 2018. It is envisaged the facility will be incorporated with the Ruwais refinery complicated, and will incorporate DETAL-PLUSTM innovation.

Inning accordance with Cepsa, the overseas concession agreement strengthens its power version and long-lasting strategy, and remains in line with the company's projections as outlined in its Power Overview 2030 record for world need for oil growth in the years to coming.

The agreement enhances Cepsa's existence in the UAE, a critical nation for the company where it has actually run in both exploration and production and bunker activities because 2013.

The giving in award is the initial to be announced for the second of three new overseas giving in areas, which have actually developed from the previous ADMA offshore giving in. On February 10, ADNOC introduced the award of a 10% rate of interest in Abu Dhabi's separate offshore Lower Zakum concession to an Indian consortium, led by ONGC Videsh.

In support of its expanded 2030 technique, ADNOC prepares to grow its crude refining capacity by 60 percent and greater than triple its petrochemical production, to 14.4 mtpa by 2025, through a staged growth strategy focused on originally optimizing its existing properties to grow and expand its products portfolio, as it delivers its calculated imperatives of a more valuable Upstream, extra lucrative Downstream and a financial and sustainable supply of gas.

ADNOC is settling concession contracts with various other potential partners for the remaining risks in the SARB and Umm Lulu, the Lower Zakum and the Umm Shaif and Nasr concessions.