CEO says he is confident company will take part in next extension of oil, gas concessions
France's Total is confident it will take part in the next extension of the oil and gas concessions in the UAE, but is hoping for higher margins, the company's chief executive said on Wednesday.
"For sure we will be in the next extention of concessions," Christophe de Margerie told a news briefing at the World Petroleum Congress in Doha.
Total is already a share holder in several oil and gas concessions in the UAE.
"Everything's changing. Abu Dhabi is changing. We are waiting for the offer," De Margerie said, adding that it was expected to arrive before the end of this year.
With the first expiry of one of the concessions in 2014, international oil companies operating in the UAE, as well as several Asian companies keen to take part in the OPEC producer's oil fields, have been waiting for the Abu Dhabi government to decide.
The UAE's concessions system allows oil and gas producers to acquire their own equity hydrocarbons from the OPEC member 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.
"I hope it will be higher than today," De Margerie said, referring to the margins.
Abu Dhabi National Oil Co (ADNOC) holds a controlling stake in each concession which it operates with several partners - a system which irks some oil companies who do not want to share their technology with rivals.
"I prefer to work with existing partners. But if the decision is to make it different, by the authorities, we will also follow it," De Margerie said.
Oil and gas concessions lie at the heart of United Arab Emirates' energy strategy which aims to boost its oil production capacity to 3.5 million barrels per day from the current 2.7 million bpd.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.