ADNOC today announced its intention to integrate the operations of the Abu Dhabi Marine Operating Company (ADMA-OPCO) and Zakum Development Company (ZADCO) into a single new company.
This consolidation will enable efficiencies and synergies across the multiple ADMA-OPCO and ZADCO offshore concessions and fields, including Zakum, the largest offshore field in the world in terms of reserves.
The consolidation is expected to yield significant financial and operational benefits. The new company resulting from this integration will be more agile, better able to respond to changing market demands, and be well positioned to take advantage of strategic opportunities for future growth.
“With ADNOC’s recent focus on driving efficiency, performance and profitability—without compromising HSE and asset integrity—the consolidation of ADMA-OPCO and ZADCO is a logical step to help achieve these objectives,” said H.E. Dr. Sultan Al Jaber, UAE Minister of State and CEO of the ADNOC Group. “The consolidation will facilitate enhanced operational performance while providing strategic benefits for future growth and advanced technology integration. Importantly, it will unite our offshore experience, streamline governance and decision making, and give management a better line of sight through the company’s operations.
“Consolidating the two companies into a single new entity responsible for operating the associated concessions will also help fulfill the ADNOC Group’s strategic imperative of creating a more profitable upstream business—benefiting both ADNOC and its partners. Furthermore, the ADMA-OPCO and ZADCO consolidation is a perfect example of how ADNOC is reshaping its upstream business to generate more value in today’s ever-evolving energy landscape,” added Dr. Al Jaber
Since the second quarter of 2016, the ADNOC Group has been focused on four key operational pillars: People, Performance, Profitably and Efficiency to help achieve four key strategic imperatives: More profitable upstream, more valuable downstream, more sustainable and economic gas supply, and developing world-class talent.
BP, ExxonMobil, Japan Oil Development Company (JODCO) and Total, the international partners in the operating companies, are working together with ADNOC through the integration phase to maintain safety performance, reliable operations, and maximize production volumes.
A steering committee will be formed by ADNOC and its JV partners to oversee the integration. Mr. Yaser Al Mazrouei, CEO of ADMA-OPCO, is being appointed as the joint CEO of ADMA-OPCO and ZADCO, and will work closely with the committee to ensure synergies are quickly realized. The consolidation process is projected to be concluded by early 2018.
Once the integration of ADMA-OPCO and ZADCO is complete the new offshore operating company will operate the associated offshore concessions.
“The existing concession rights of our partners in the concessions currently operated by ADMA-OPCO and ZADCO will not be affected by the consolidation. Looking ahead, ADNOC will continue to review and consider all options, and pursue partners for concessions expiring in 2018,” added Dr. Al Jaber.
ADNOC has a 60% share in ADMA-OPCO. The remaining shares are held by BP, JODCO, and Total. ADNOC holds a 60% share in ZADCO, while the remaining shares are held by ExxonMobil and JODCO.