Total Confirms a Payment of $1.45 Billion for Stake in Offshore Oilfields in Abu Dhabi

Total SA has announced it will pay $1.45 billion for stakes in two offshore fields in Abu Dhabi. This confirmation will further solidify its year-long relationship as the UAE continues to look to expand its production levels.

According to Abu Dhabi National Oil Co (ADNOC), Total SA will acquire a 20% stake in the Umm Shaif Nasr oil field and support the development of natural gas at the site. Sultan Al Jaber, the CEO of ADNOC and Patrick Pouyuanne, the CEO of Total agreed that Total would also acquire a 5% stake in the Lower Zakum oil field.

Image result for offshore oil UAE

Abu Dhabi contains over 5% of the worldwide crude reserves and produces nearly all of the oil for the UAE. The UAE is making significant efforts to eradicate its output to remove a global glut. However, Abu Dhabi is planning to extend its overall capacity to nearly 3.5 million barrels a day by the end of 2018. ADNOC has suggested it is capable of pumping nearly 3 millions barrels a day, with nearly half of this supply coming directly from offshore deposits. The region is also looking to expand its gas production to generate energy for both industry and households.

Al Jaber has highlighted that the recent agreement with Total will further enhance the development of the Umm Saif gas field, suggesting the site has the potential to generate nearly 500 million cubic feet of gas. Total have stated that they intend to increase the output capacity at Umm Shaif from 300 000 to nearly 500 000 barrels of crude a day.
The new deal, which will extend for forty years makes Total, the fifth international business to collaborate in the region. Total will join Eni Spa at the Lower Zaum and Umm Shaif and Nasr fields. A series of Indian businesses have also secured stakes in the Lower Zakum fields. 

Pouyanne added that the agreements will ensure that Total secures access to considerable and competitive resources of hydrocarbons for a long period. Total confirmed a fee of $1.15 billion for its share in the Umm Shaid and Nasr fields. It will also pay a further $300 million for its stake in Lower Zakum.

According to ADNOC, the Lower Zakum field has a targeted production capacity of nearly 500,000 barrels a day, whilst the SARB and Umm Lulu fields will generate in excess of 200,000 barrels a day.

Explore the latest offshore oil and gas jobs in the Middle East with Energy Jobline.

Visit source site

uaeAbu Dhabi National Oil Company ADNOCTotal

More items from gkimberley

Robotic and drone technology could transform the offshore oil market

The rise and development of new technology have encouraged the oil and gas industry to integrate new devices and systems into the market in an attempt to enhance efficiency, production levels and reduce overall costs. Oil businesses are now exploring the potential of utilising robotic technolog ...

Grace Kimberley

Posted 1 month agoOpinion > Oil and GasDrilling Technology

Former Oil Industry Executive Urges Industry to Clean Up its Climate Plans

Bill Hafker, a former ExxonMobil executive recently discussed the oil and gas industry to US media and how it can address the issues of climate change. The oil and gas industry currently account for approximately fifty percent of global carbon emissions. Industry experts have indicated that in ord ...

Grace Kimberley

Posted 1 month agoOpinion > ExxonMobilParis Climate Agreement

BP Announces Development of Deep-Water Indian Gas Fields

The resurgence of the global oil and gas industry continues with BP's announcement that it intends to develop ‘Satellite cluster' deep-water gas fields in India to bring onstream upwards of 1 bcf/d of new production by 2022. BP is collaborating with Reliance Industries Limited (RIL) to develop the ...

Grace Kimberley

Posted 1 month agoPress > Gas IndustryIndiaBP

Pilot Project to Introduce Robot to Workforce on North Sea Oil Rig

Tests are underway into how automated machines can be utilised for dangerous offshore operations. An automated robot is set to be transferred to an offshore oil platform in the North Sea this year. The innovative project, valued at around £4m is aimed at eliminating humans from dangerous and ‘tedio ...

Grace Kimberley

Posted 2 months agoPress > offshore oilUK North Sea

Is the Energy Future Bright for Europe and Africa? NES Global Talent Weighs In

Published: 13 Mar 2018 Gavin Peavoy, Managing Director at NES Global Talent , an industry-leading recruitment agency provides insights into the future of the energy market, including how tech has transformed the energy recruitment industries. Peavoy, who has represented NES Global Talent ...

Grace Kimberley

Posted 3 months agoOpinion > energy jobsOil and Gas Jobsmiddle east jobs
All posts from gkimberley