OVL and partners acquire 10% stake in Abu Dhabi oilfield for $600 million – Feedback

ONGC Videsh Ltd and its partners have acquired a 10 per cent stake in a large offshore oilfield in Abu Dhabi for USD 600 million, the first time any Indian company has set foot in the oil-rich UAE. The contract for the oilfield in Lower Zakum Concession, as part of India’s efforts to ensure the country’s energy security, was signed in Abu Dhabi last evening in the presence of Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed al-Nahyan.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and a unit of Bharat Petroleum Corp Ltd (BPCL), paid a signing amount of USD 600 million for a 10 per cent stake in Abu Dhabi National Oil Co’s (ADNOC) 40-year Lower Zakum Concession, Offshore Abu Dhabi. “The current production of this field is about 400,000 barrels of oil per day (20 million tonnes per annum) and Indian consortium’s annual share shall be about 2 million tonnes,” the OVL said in a press statement.

http://www.indianoilandgas.com/viewnews.php?id=36201

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