Dr. Sultan Ahmed Al Jaber (front R), ADNOC Group CEO, and Claudio Descalzi (front L), CEO of Eni, sign historic agreements awarding Eni stakes in two of Abu Dhabi's offshore concessions, witnessed by H.H. Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces (back center R), and H.E. Paolo Gentiloni, Prime Minister of Italy (back center L).
The deal with Eni comes less than a month after Japanese energy company INPEX was awarded a 10 percent stake in the Lower Zakum play off the coast of Abu Dhabi in an agreement that pushes Japanese cooperation with ADNOC into 2058.
Eni contributed a participation fee of AED 2.1 billion (US $575 million) to enter the Umm Shaif and Nasr concession and a fee of AED 1.1 billion (US $300 million) to enter the Lower Zakum concession. The signing ceremony was held in Abu Dhabi, United Arab Emirates.
The Zohr super-giant gas field was successfully started-up in December 2017, in only 28 months after its discovery, and is now producing 400 million f3/d. It split an offshore production concession that expired last week into three blocks, and Eni is the fourth worldwide entrant to secure rights to one of the new areas.
The emirate is seeking partners that can contribute technology and join projects to double refining capacity and almost triple petrochemical output, Adnoc said last week.
The deal is ADNOC's first with one of the energy majors.
The stake in the offshore Shorouk concession would mark Mubadala Petroleum's entrance in the Egyptian market and is being acquired for $934m, according to media reports.
Headquartered in Abu Dhabi, Mubadala Petroleum has exploration, development and production activities across eight countries, with main focus on the Middle East and Southeast Asia.
The existing ADMA-OPCO concession, which expired on March 8 produces around 700,000 barrels per day (bpd) of oil and is projected to have a capacity of about 1.0 million bpd by 2021. Abu Dhabi holds about 6 percent of the world's crude reserves.