Abu Dhabi Oil Co Ltd, a subsidiary of Japan’s Cosmo Oil Co and an operating company in Abu Dhabi, have agreed prinicpal terms and conditions for continuing discussions with the Supreme Petroleum Council of Abu Dhabi, for the renewal of the three operating fields in the current Concession Agreement, and the granting of a new concession area.
There is a strong likelihood the new three-decade long concession will be rubber-stamped by the SPC ahead of the 2012 expiry date for its existing interests.
According to Cosmo, the new concession area, located adjacent to ADOC’s operating fields, covers an undeveloped oilfield. The new Concession Agreement will be a 30-year contract effective as of 6th December 2012, when the existing deal expires.
After the new concession area is granted, ADOC will conduct evaluation works including drilling appraisal wells and if the oil in place is confirmed to be in commercial quantities, ADOC will be in a position to develop upstream production through utilization of its existing ADOC facilities in Abu Dhabi.
ADOC’s major shareholder is Cosmo, which holds a 63% stake, and all concession rights.
A Cosmo statement said: “The agreement, symbolizing the existing good bilateral relations of the UAE and Japan, will enhance further amicable relations, since the UAE is one of the major oil suppliers to Japan.”
