An Indian Consortium led by ONGC Videsh, wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), BPRL & IOCL signed a pact for acquisition of 10% participating interest in the ADNOC Group owned offshore Lower Zakum Concession for 40 years from 2018 to 2057. This is the first time that Indian oil & gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources.

The Concession, which has a term of 40 years, was signed by Mr Shashi Shanker, Chairman, ONGC Group of companies and His Excellency Dr Sultan Ahmed Al Jaber, Chief Executive Officer, ADNOC Group and member of Abu Dhabi’s Supreme Petroleum Council, in the presence of Hon’ble PM Shri Narendra Modi and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces.

Sixty percent of the participating interest will be retained by ADNOC and the rest will be awarded to other international oil companies. Lower Zakum is one of three separate offshore concession areas that were formerly part of the ADMA offshore concession.

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 & UAE.”

ADNOC Group’s CEO, Dr Sultan Ahmed Al Jaber 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.

Shri Shashi Shanker, CMD, ONGC Group of Companies stated “This agreement with ADNOC Group will bring a plethora of opportunities in the times to come.”

About ONGC

ONGC is the largest producer of crude oil and natural gas in India, contributing around 70 per cent of Indian domestic production. ONGC's market capitalization as on 19th January, 2018, was INR 248451 Crore. During the financial year ended 31st March 2017, ONGC Group had produced 61.60 million tonne of oil and oil equivalent gas (mmtoe); the Consolidated Gross Turnover was INR 142149 Crores, Consolidated Net Profit was INR 20498 Crore for the year 2016-17 and total oil and gas reserves were 2,142 mmtoe as on 31st March 2017.

About the Abu Dhabi National Oil Company (ADNOC)

ADNOC is one of the world’s leading oil and gas companies and is fully owned by the government of the Emirate of Abu Dhabi. The company was founded in 1971 and is active in all areas of the oil and gas industry.
It has 17 specialized subsidiaries and joint ventures operating in both upstream and downstream sectors. The ADNOC Group is active in the United Arab Emirates and across the whole world and produces more than 2.7 million boe a day. In the past few years, significant achievements were made in the expansion of the development of gas fields to meet the increased demand from industry gas users; and gas injection requirements in order to enhance the oil and condensate recovery from the producing fields.
While carrying out all its business activities, ADNOC is committed to sustainable development, ensuring a harmonious balance between people’s needs and Earth’s resources, adhering to the best international practices and supporting all programs and initiatives of environment protection while its track record in HSE sets the standard not only at the regional Gulf level but at the international level as well.