ONGC Videsh acquires 10 per cent stake in Abu Dhabi oilfield

ONGC Videsh, IOC and Bharat Petro Resources through a consortium acquire 10 per cent stake in Lower Zakum Concession, Abu Dhabi.

In what can be seen as India's entry into the development of upstream hydrocarbons sector in Abu Dhabi, the consortium was awarded the stake for 2.2 billion UAE dirhams or US$ 600 million, with a term of 40 years. The Indian consortium is led by ONGC Videsh, which is ONGC’s international arm, includes Bharat Petro Resources Limited, which is BPCL's international arm and Indian Oil Corporation Limited (IOC).

Lower Zakum Concession, one of the areas under Abu Dhabi National Oil Company (ADNOC) which is targeting 450,000 barrels a day (bopd) of crude production by 2025. The current output is 400,000 bopd and the share of the Indian Consortium will be about 2 MMT. ADNOC has shared its concession with international oil majors including BP, Total, and Japan’s Inpex.

At 11:20 hours, the stock of ONGC was trading at Rs. 191.70 per share, up by 2.10 per cent, BPCL was at Rs. 464.50 per share, down by 2.18 per cent, IOC was at Rs. 377.90 per share, down by 0.34 per cent.