Abu Dhabi, February 12: With an investment of $600 mn, an Indian consortium has purchased a stake in Abu Dhabi's oil reserves for the first time in the country's history.
The concession is valid for 40 years and this is the first time that an Indian company would be involved in the development of oilfields in Abu Dhabi.
Speaking at the signing, Prime Minister Modi said “The offshore concession in favour of the Indian consortium has taken our bilateral engagement in the oil and gas sector to a new level, which befits the comprehensive strategic partnership between our two countries. I am happy to note that we have progressed from a buyer-seller relationship to an era of mutual investments in the oil and gas sector.”
The consortium, led by India’s ONGC Videsh, contributed a participation fee of AED 2.2 billion ($600 million) to enter the concession. The concession will be operated by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession partners.
The Indian consortium is made up of ONGC’s wholly owned subsidiary ONGC Videsh, which has stakes in 39 oil and gas projects, in 18 countries; the Indian Oil Corporation, India’s largest commercial enterprise, encompassing the entire hydrocarbon value chain, which caters to nearly half of India’s petroleum consumption with 11 of India’s 23 refineries a 13,000-km pipelines network and a countrywide marketing set-up of over 47,000 customer touch-points, and Bharat PetroResources, which has stakes in 23 oil and gas assets in 7 countries and is a 100% subsidiary of Bharat Petroleum Corporation Limited which has interests encompassing the entire hydrocarbon value chain.