Indian energy consortium bidding for Adnoc tenders

Monday, Apr 11, 2016

Indian Oil Corporation, Oil India, ONGC ONGC Videsh Limited Oil, Bharat Petroleum are bidding for the 22 per cent remaining share

Dubai

Four Indian energy companies are bidding for the remaining Abu Dhabi National Oil Company (Adnoc) onshore oilfield concession, India’s Petroleum Minister told Gulf News on Monday.

The concession for Adnoc’s 15 onshore oilfields collectively known as the Abu Dhabi Company for Onshore Oil Operations (Adco) have been open since January 2014 when a deal with Western majors, which dated back the 1970s, expired.

A 22 per cent share in the concession remains open. South Korea’s GS Energy, Japan’s Inpex Corp and France’s Total were awarded contracts in 2015. Adnoc holds a 60 per cent stake.

Indian Oil Corporation, Oil India and ONGC ONGC Videsh Limited Oil, a subsidiary of Oil and Natural Gas Corporation Limited (ONGC), are bidding as a consortium for the remaining share of the Adco concession, Indian Petroleum Minister Dharmendra Pradhan said. The Minister’s office later confirmed Bharat Petroleum were also part of the consortium.

“Indeed India is interested,” Pradhan told Gulf News in an interview at the Indian Consulate in Dubai. He had previously said Indian companies were interested in the concession without providing details.

Abu Dhabi, the state owner of Adnoc, has been evaluating whether to bring in Asian firms or maintain its relationships with the Western majors since the concessions expired. ExxonMobil, Shell, Total and BP had each held 9.5 percent stakes in the former concession.

Adnoc was not available to immediately comment on the Pradhan’s statement when contacted by Gulf News. However, its newly appointed chief executive Sultan Al Jaber was recently quoted by state media as saying “the door is still open” to talk about the concession.

“Having said that, the door is still open to discuss the participation of other international players in the remaining 22 percent share in ADCO,” he was quoted by state news agency WAM last week.

“In the spirit of partnership we are enthusiastic to work with the industry and to mutually benefit from what is a very attractive, long-term and sustainable opportunity in the upstream oil and gas sector,” he said.

Pradhan declined to comment as to when a decision could be made on the bid, stating that it was a company-to-company issue.

Details of the concession bid comes two months after a state visit to India by His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces. During the visit, Adnoc and the Indian Strategic Petroleum Reserve Limited (ISPRL) reached a preliminary agreement to store Abu Dhabi crude in facilities located in India.

Pradhan said India and the UAE have resolved tax issues surrounding the agreement but that “some other issues are involved.” He declined to comment on the issues.

“We are talking it through with each other,” he said.

“We want [an agreement] very soon but it has to be mutually agreed.”

Staff Report