Industry sources say Abu Dhabi National Oil Company will respond to revised bids later this week
Abu Dhabi National Oil Company (ADNOC) is expected to respond this week to revised bids from BP and Royal Dutch Shell for stakes in a 40-year onshore oilfield concession, industry sources familiar with the matter said on Monday.
BP and Shell were asked to raise their signing bonus, which is paid in advance in cash, one source told Reuters, in line with that offered by France's Total, which has already renewed its concession.
"BP and Shell have made their (revised) offers, their bids are received well," a second source told Reuters. ADNOC could make its announcement "soon", the source said.
ADNOC signed an agreement on Jan. 29 with Total giving the firm a 10 percent stake in the new concession to help operate the United Arab Emirates' biggest oilfields.
Shell and BP are also expected to get 10 percent stakes, if they agree to ADNOC's terms, while Asian newcomers may take the remaining shares, a second source said.
"Shell has been present in Abu Dhabi for over seven decades, and our aspiration is to continue to be a partner in the Emirate's energy future," a Shell spokesman said.
BP could not immediately be reached for comment.
A total of nine firms bid for stakes in the Abu Dhabi Company for Onshore Oil Operations (ADCO) concession which became available after a 40-year deal with Western oil companies expired in January 2014.
ExxonMobil, Shell, Total and BP each held 9.5 percent equity stakes in that ADCO concession.
After the deal expired last year, ADNOC took 100 percent of the concession as political leaders in Abu Dhabi weighed up whether to bring in Asian firms, industry and diplomatic sources said.
Shell, Total and BP have made new bids, while Exxon has decided against bidding.
Other bidders include US firm Occidental Petroleum Corp, Italy's ENI, China National Petroleum Corp (CNPC),Norway's Statoil, Korea National Oil Corp. and Japan's Inpex.
Each company submitted a proposal for a 5 percent stake and another for a 10 percent stake.
The fields produce 1.6 million barrels per day (bpd) and are expected to reach 1.8 million bpd from 2017.
In the new concession, the companies are expected to receive a per-barrel fee of around $2.85 versus $1 under the previous concession, the first source said.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.