Abu Dhabi National Oil Co (ADNOC) director general announced on Sunday the company will present the current structure of its oil and gas concessions in the United Arab Emirates to the Supreme Petroleum Council of Abu Dhabi by early next year at the latest.
“It is our recommendation to have the same format. but this will be submitted to the SPC and they can decide if they want to change,” Abdulla Nasser Al Suwaidi told reporters on the sidelines of an oil and gas conference.
According to the concession system, oil and gas producers are allowed to acquire an equity in hydrocarbon resources of the UAE. The first concession renewal will take place in 2014.
Abu Dhabi currently produces about 1 million barrels per day from its offshore fields, more than 40% of its total output.
The emirate uses a unique technique for offshore developments, the only country in the Gulf, which involves the use of artificial islands for drilling and housing supporting infrastructure. Reports suggest the first drill on an artificial island will be driven into the ground next month.
According to the Middle East Economic Digest, the UAE alone accounts for $10bn (AED36.73bn) worth of offshore oil and gas construction projects in the region. The vast majority of those projects lie in Abu Dhabi, the UAE’s hydrocarbon heartland.