Deal closed on Upper Zakum : ExxonMobil to get 28% equity stake in one of the world’s largest oilfields
Posted: 28 March 2006
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ExxonMobil has closed a major deal with the Abu Dhabi National Oil Company (ADNOC) through which ExxonMobil Abu Dhabi Offshore Petroleum Company Limited (EMAD) receives a 28 per cent undivided interest out of ADNOC's 88 per cent interest in the Upper Zakum Oil Field.
 This will leave ADNOC with a 60 per cent interest and Japan Oil Development Company Limited (JODCO) will continue to hold the remaining 12 percent interest. ExxonMobil was selected from an initial field of six competing companies based on demonstration of its technical capabilities.
Upper Zakum is one of the world's largest oil fields, contributing significantly to Abu Dhabi's current production, and with potential for substantial production growth. ExxonMobil, with ADNOC and JODCO, will provide support to the joint operating company, Zakum Development Company (ZADCO), in pursuing the objective of increasing production by about 50 per cent to a target of 750,000 barrels per day. ExxonMobil has participated in Abu Dhabi's petroleum business for more than sixty-five years.
ExxonMobil commits to develop, supply, support and apply technologies to maximise ultimate recovery from Upper Zakum reservoirs. The company will establish an ExxonMobil Technology Centre in Abu Dhabi to apply advanced technology to Upper Zakum in areas of reservoir management, well management and production operations.
It will also provide support for training and personnel development, including access to its world-class Upstream Training and Technology Centre in Houston. ExxonMobil also agreed to assist in establishing a specialised research and development facility at the Petroleum Institute, the leading technical university in Abu Dhabi.
Rex Tillerson, Chairman and CEO of Exxon Mobil said: "We look forward to joining the already strong ZADCO team and to supplementing and enhancing the technology and capabilities of ZADCO and its shareholders. We also look forward to cooperating closely with ADNOC in the areas of training and development of human resources."
Posted by Editor Pipeline Magazine
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