Austria's OMV, ADNOC said to sign offshore oil deal this month

Sources say agreement will be signed in Abu Dhabi after months of negotiations
Austria's OMV, ADNOC said to sign offshore oil deal this month
By Bloomberg
Tue 03 Apr 2018 06:52 PM

Austrian oil producer OMV and Abu Dhabi National Oil Company are set to sign a partnership deal to produce oil from offshore fields in the Gulf later this month, according to people with knowledge of the situation.

The agreement after months of negotiations will be signed in Abu Dhabi, the people said, asking not to be identified because the talks are confidential. An Adnoc media official and an OMV spokesman declined to comment.

Adnoc, which produces almost all of the United Arab Emirates’s oil, has been awarding new concessions to foreign investors to gain access to technology and finance and to secure markets for its crude.

The remaining stake left to be awarded is 20 percent of the Umm Lulu and Sateh Al Razboot oil fields in the Gulf. In February, Spain’s Cia Espanolade Petroleos agreed to pay $1.5 billion for a 20-percent stake in development rights for the same fields.

Previous winning bidders for stakes in Adnoc’s assets include India’s state-owned Oil & Natural Gas Corp and China National Petroleum Corp.

OMV would be the second company with links to Abu Dhabi to win a stake in the sheikhdom’s fields. OMV’s second-largest shareholder is Mubadala, Abu Dhabi’s state-run investment company. Spain’s Cepsa is wholly owned by Mubadala. Austria owns 31.5 percent of OMV.

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