November 4, 2010 / 12:44 PM / 9 years ago

FACTBOX-UAE oil and gas concessions

Nov 4 (Reuters) - Multinational companies hold large stakes in concessions that pump most of the oil and gas in the United Arab Emirates, the world’s third-largest oil exporter.

The UAE has said it aims to increase its oil production capacity to 3.5 million barrels per day (bpd) by 2018 from 2.7 million bpd now and it will be reliant on these concessions for the increase. [ID:nLDE6740HT]

The UAE’s concessions system allows oil and gas producers to acquire their own equity hydrocarbons from an OPEC country but in return they have to provide much of the investment for new production and agree margins analysts say are very tight by international standards.

Some foreign companies have pointed out that the current multi-partnered structure in the concession limits their ability to bring all of their technology onboard because of the fear of rivals gaining access to it. [ID:nLDE6A01BA]

Following are details of the four largest concessions, with capacity based on official information and industry estimates.

ABU DHABI COMPANY FOR ONSHORE OIL OPERATIONS (ADCO)

* Capacity around 1.4-1.5 million bpd.

* Concession expires 2014.

* ADCO has said it aims to boost capacity to 1.8 million bpd by 2017, spending over $5 billion on projects.

* Operates onshore and in shallow coastal waters of the emirate of Abu Dhabi.

* Oil output is mainly from five fields: Asab, Bab, Bu Hasa, Sahil and Shah. All fields are linked to the storage and shipping facilities located at Jabel Dhana, where tankers load Murban crude for export.

* Oil production also comes from four other fields: Jarn Yaphoure, Al Dabbiya, Rumaitha and Shanayel.

* Original concession signed January 1939 with Petroleum Development (Trucial Coast). In 1962, the company became known as the Abu Dhabi Petroleum Company (ADPC), and in 1979, it became known as the ADCO.

* Equity stakes:

- Abu Dhabi National Oil Company (ADNOC) 60 percent

- BP Plc (BP.L) 9.5 percent

- Royal Dutch Shell (RDSa.L) 9.5 percent

- Total SA (TOTF.PA) 9.5 percent

- Exxon Mobil (XOM.N) 9.5 percent

- Partex Oil and Gas 2 percent.

ABU DHABI MARINE OPERATING COMPANY (ADMA-OPCO)

* Capacity around 550,000 bpd.

* Concession expires 2018

* First offshore oil discovery in Abu Dhabi was made in 1958 at Umm Shaif. Operations focused on offshore areas of Abu Dhabi.

* Oil and gas production comes from two major fields, Umm Shaif and Lower Zakum. Crude is transferred to Das Island, for processing, storing and export.

* Equity stakes:

- ADNOC 60 percent:

- BP 14.66 percent

- Total 13.33 percent

- Japanese Oil Development Co (Jodco) (owned by INPEX (1605.T)) 12 percent.

ZAKUM DEVELOPMENT COMPANY (ZADCO)

* Capacity 550,000 to 600,000 bpd.

* Upper Zakum concession expires 2026, other fields 2018.

* Zadco was established in 1977 to develop and operate the Upper Zakum field, which Zadco ranks as the world’s fourth largest. It also operates Umm Al Dalkh and Satah fields.

* The Upper Zakum concession was extended to 2026.

* Previously Zadco aimed to boost output from Upper Zakum to 750,000 bpd by 2010. However, an official from the company last year said that the full capacity ramp-up was set to be completed by end-2015.

* Equity stakes:

- ADNOC 60 percent

- Exxon Mobil 28 percent

- Jodco 12 percent

ABU DHABI GAS INDUSTRIES LTD (GASCO)

* Set up in 1978, Gasco has the concession to handle gas processing and natural gas liquid extraction operations from the UAE’s onshore fields. It draws gas from various fields, including Asab, Habshan-Bab, BuHasa and Ruwais.

* The UAE holds the world’s seventh-largest gas reserves, at around 227.1 trillion cubic feet, according to BP statistics. Much of the UAE’s gas is sour.

* The Gasco concession was renewed in April 2009 on a 20-year contract backdated to start in 2008 so is due to expire in 2028.

* Equity stakes:

- ADNOC 68 percent

- Shell 15 percent

- Total 15 percent

- Partex 2 percent

OTHER UAE CONCESSIONS

* In addition to Adco, Adma-Opco, Zadco and Gasco, the UAE also has a handful of much smaller concessions, including one granted to Occidental Petroleum (OXY.N), but none of them yet produces large quantities of oil or gas.

Reporting by Simon Webb, Christopher Johnson, David Turner, Amena Bakr, Barbara Lewis and Humeyra Pamuk; editing by Keiron Henderson

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