Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces Sheikh Mohamed bin Zayed and Austria’s Chancellor Kurz witnessed on Sunday ADNOC Offshore concession agreement awarding OMV a 20 percent stake in SARB and Umm Lulu offshore concession.
Based on the agreement, OMV contributed a participation fee of $1.5 billion to enter the concession, which also takes account of previous investments made by ADNOC in the SARB field. ADNOC retains a majority 60 percent stake in the offshore concession that will be operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of the concession partners.
The agreement, which has a term of 40 years, effective from March 9, was signed by ADNOC CEO Sultan Ahmed Al Jaber and OMV CEO Rainer Seele.
Sheikh Mohamed bin Zayed stressed the importance of the agreement, which completes all maritime fields rights in Abu Dhabi in cooperation with a group of internationally recognized companies. This, according to the Crown Prince, reinstates UAE's well established role in this vital sector.
"The agreement represents a great success for the two companies, which will contribute to enhancing their fruitful partnership. It also benefits Austria as a major shareholder in OMV and plays an important role in strengthening bilateral relations with the UAE," said the Austrian Chancellor.
For his part, ADNOC CEO indicated that this long-term strategic agreement with OMV, as well as the other seven offshore concession agreements underscore ADNOC’s commitment to maximizing value from Abu Dhabi’s substantial resources for the benefit of the nation, in line with the leadership’s directives.
"Expansion of the global economy and increasing demand for oil, refined products and petrochemicals, provide us with new opportunities to create value across our upstream and downstream business. To seize these opportunities, we will work closely with OMV, and our other partners to further optimize operational efficiencies, enhance performance, and capture future growth opportunities.
OMV’s strong track record in deploying advanced technologies to cost-effectively increase recovery rates from mature fields will help enable ADNOC to continue to be a reliable supplier of oil for decades to come," said Jaber.
Meanwhile, OMV CEO announced that OMV is establishing a material position as an oil producer in the UAE and is delighted to further build on its existing partnership with ADNOC and Abu Dhabi.
"The offshore concession award is an important milestone in OMV’s delivery on its 2025 strategy, as we expand our footprint in one of the world’s leading oil and gas hubs. We are confident that our technological expertise will contribute to value creation and profitable growth, for all partners involved," asserted Seele.
Today’s agreement completes ADNOC's round of offshore concessions since the beginning of the year, which contributed to $7.92 billion in participation fees and secured markets for 40 percent of the UAE’s oil for the next 40 years.
OMV is an Austrian integrated oil and gas company part-owned by a subsidiary of Abu Dhabi’s Mubadala Investment Company.
OMV Group sales of EUR 20 billion and a workforce of 21,000 employees, makes it Austria’s largest listed industrial company. In addition, OMV has a strong base in Romania and Austria and a balanced international portfolio, including the North Sea, the Middle East and Africa, and Russia as well as other core regions.
