ONGC Videsh, wholly
owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited
(ONGC) and its partners 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 in the presence of Prime Minister Narendra Modi
and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed al-Nahyan.
This is the first time an Indian company
setting foot in the oil-rich UAE, a momentous historic event.
The Concession was signed by Mr. Shashi Shanker, Chairman, ONGC Group of
companies and His Excellency Dr Sultan Ahmed Al Jaber, CEO, ADNOC Group and
Member of Abu Dhabi’s Supreme Petroleum Council.
The deal "will help India meet its
growing demand for energy and refined products, create opportunities for ADNOC
to increase its market share in a key growth market, and build a solid
foundation as ADNOC explores potential international investments, particularly
focused on downstream opportunities," Sultan al-Jaber said.
ADNOC will have 60 per cent stake
in the existing ADMA- OPCO concession, which produces around 700,000 barrels
per day of oil and is projected to reach about 1 million barrels per day 2021.
Prime Minister Modi said, “The ADNOC
offshore concession in favour 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 and UAE.”
Mr. Shashi Shanker, CMD, ONGC Group of
Companies said, “This agreement with ADNOC Group will bring a plethora of
opportunities in the times to come.”
Alongside the concession award, ADNOC
and the Indian Strategic Petroleum Reserves Ltd (ISPRL) exchanged agreements,
to implement the strategic crude oil storage facility in Mangalore.
OVL is India's largest international oil
and gas company, having 39 projects in 18 countries, including Azerbaijan,
Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South
Sudan, Sudan, Namibia, Venezuela,
Vietnam and New Zealand.