ONGC led Indian Consortium to acquire 10% Stake in Lower Zakum Concession, Offshore Abu Dhabi

New Delhi: 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.

 

H.H. Sheikh Mohamed Bin Zayed and Hon’ble PM, Shri Narendra Modi witness signing of historic ADNOC Offshore Concession Agreement, awarding ONGC-Led Consortium 10% stake in Lower Zakum Offshore concession for 40 years for a participation fee of AED 2.2 Billion

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.”

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