Adnoc to Combine Two Offshore Units

Adnoc has decided to combine operations of the Abu Dhabi Marine Operating Company (Adma-Opco) and Zakum Development Company (Zadco) into a single new company in order to inject efficiencies in offshore operations amid low energy prices.

“The consolidation is expected to yield significant financial and operational benefits. The new company resulting from this integration will be more agile, better able to respond to changing market demands, and be well positioned to take advantage of strategic opportunities for future growth,” the Abu Dhabi based company said October 4.

BP, ExxonMobil, Japan Oil Development Company and Total, partners in the operating companies, are working together with Adnoc through the integration phase, the company said. Adnoc and its partners will form a steering committee to oversee the integration. Once the integration is complete the new offshore operating company will operate the associated offshore concessions.

“The existing concession rights of our partners in the concessions currently operated by Adma-Opco and Zadco will not be affected by the consolidation,” Sultan Al Jaber, UAE Minister of State and CEO of the Adnoc Group said. 

Adnoc has a 60% share in Adma-Opco. The remaining shares are held by BP, Japan Oil, and Total. It holds a 60% share in Zadco, while the remaining shares are held by ExxonMobil and Japan Oil.

Shardul Sharma