The Supreme Petroleum Council (SPC) and Abu Dhabi National Oil Company (ADNOC) on Monday signed agreements with Exxon Mobil Corporation and subsidiaries covering participation in Upper Zakum Oil Field, located in the offshore areas of the Abu Dhabi Emirate.
Under the agreements, ExxonMobil Abu Dhabi Offshore Petroleum Company Limited gains ownership of 28% out of ADNOC's 88% equity stake in the Upper Zakum reservoirs (Zakum Field) effective January 1, 2006, while Japan Oil Development Company (JODCO) will continue to hold the remaining 12% interest in the Zakum Field, according to a statement issued by ADNOC.
The SPC selected ExxonMobil in April 2005 for submitting the best technical offer.
Under the revised development agreement, which is amended to reflect the necessary changes arising from the entry of ExxonMobil, the expiry date of the interests of ExxonMobil and JODCO in the Field is set forth as 9 March, 2026.
Upper Zakum is one of the world's largest oil fields, contributing significantly to Abu Dhabi's current production, and with potential for substantial production growth. ExxonMobil, with ADNOC and JODCO, will provide support to the joint operating company, Zakum Development Company (ZADCO), in pursuing the objective of increasing production by about 50 percent to a target of 750,000 barrels per day. ExxonMobil has participated in Abu Dhabi's petroleum business for more than sixty-five years.
In these agreements, ExxonMobil commits to develop, supply, support and apply cutting edge technology to maximize ultimate recovery from Upper Zakum reservoirs. The company will establish an ExxonMobil Technology Center in Abu Dhabi to apply industry's most advanced technology to Upper Zakum in areas of reservoir management, well management and production operations.
Exxon Mobil will also provide support for training and personnel development, including access to its world-class Upstream Training and T echnol0 gy Center in Houston. The company also agreed to assist in establishing a specialized research and development facility at the Petroleum Institute, the leading technical university in Abu Dhabi.
On this occasion, Yousef Omair bin Yousef, SPC Secretary General, Chief Executive Officer of ADNOC, said: "While welcoming ExxonMobil to this successful joint venture, the SPC, and ADNOC are convinced that with its wealth of expertise and state-of-the-art technology, ExxonMobil's partnership will further consolidate the firm foundation laid by the existing team of JODCO and ZADCO. We believe that all partners will benefit trom this lucrative venture. The agreements also reflect the standing policy of the SPC and ADNOC on strengthening strategic partnerships with their industrial shareholders." "ExxonMobil is deeply honored to have this opportunity to participate in the Upper Zakum Field," said Rex Tillerson, Chairman and Chief Executive Officer of Exxon Mobil Corporation. 'We look forward to joining the already strong ZADCO team and to supplementing and enhancing the technology and capabilities of ZADCO and its shareholders. We look forward to cooperating closely with ADNOC in the areas of training and development of human resources," he added.
For their part, JODCO said that, as a long-standing partner in the Field, they looked forward to cooperating with ADNOC and Exxon Mobil to establish a solid partnership among the three parties to increase the production capacity and ultimate economic recovery factor from the field.