ONGC-led consortium acquires 10% stake in UAE's offshore oilfield

New Delhi [India], Feb 12 (ANI): An Indian consortium led by ONGC Videsh, a wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), BPRL and IOCL signed a pact for acquisition of 10 percent participating interest in the ADNOC Group-owned offshore Lower Zakum Concession for 40 years from 2018 to 2057.

The announcement comes in the wake of Prime Minister Narendra Modi's official visit to the UAE as part of his four-nation tour and is the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi's hydrocarbon resources.

With the agreement in place, 60 percent of the participating interest will be retained by ADNOC and the rest will be awarded to other international oil companies. Furthermore, the deal involves a participation fee of AED 2.2 billion.

Hon'ble Prime Minister Shri Narendra Modi said, "The ADNOC offshore concession in favor of the Indian consortium has taken our bilateral engagement in the oil and gas sector to a new level, which befits the comprehensive strategic partnership between India and the UAE."

ADNOC Group's CEO, Dr Sultan Ahmed Al Jaber further stated that this strategic partnership with ONGC and other members of the consortium would help India meet its growing demand for energy and refined products, and create opportunities for ADNOC Group to increase its market share in a key growth market.

The Concession was signed by Shashi Shanker, Chairman, ONGC Group of companies and Dr Sultan Ahmed Al Jaber, Chief Executive Officer, ADNOC Group and member of Abu Dhabi's Supreme Petroleum Council, in the presence of Prime Minister Modi, His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces.

For the unversed, Lower Zakum is one of three separate offshore concession areas that were formerly part of the Abu Dhabi Marine Operating Company (ADMA) offshore concession. (ANI)