ADNOC Group and Italy’s oil and gas company, Eni, have signed a 40-year contract awarding the Italian multinational corporation stakes in two of Abu Dhabi’s offshore concession areas, according to a company statement released on Monday.
Under the agreement, Eni will be awarded a 10% interest in the Umm Shaif and Nasr concession and a 5% share in the Lower Zakum concession, for participation fees of AED 2.1 billion ($575 million) and AED 1.1 billion ($300 million), respectively.
“These agreements underline the international market’s confidence in ADNOC’s long-term growth plans and the UAE’s stable and reliable investment environment,” ADNOC Group CEO Sultan Ahmed Al Jaber said.
An ADNOC unit, ADNOC Offshore, will operate both concessions on behalf of all concession partners, the Emirati energy giant revealed.
The Rome-based firm is considered the first Italian firm awarded concession rights in Abu Dhabi’s oil and gas sector.
“Eni is committed to applying its experience in the development and production of world-class oil and gas resources in support of ADNOC’s objectives to cost-effectively increase production capacity,” ENI’s CEO Claudio Descalzi commented.
Eni operates in 73 countries in five continents.