Lower Zakum; Source: ADNOC

TotalEnergies expands its upstream portfolio in UAE with several offshore fields

French-headquartered energy giant TotalEnergies has inked a deal with CEPSA to acquire its upstream assets in the United Arab Emirates (UAE), which will enable the oil major to add multiple offshore fields to its asset portfolio.

Lower Zakum; Source: ADNOC

TotalEnergies revealed on Wednesday, 1 March 2023, that it had signed an agreement to acquire CEPSA’s upstream assets in the UAE with an effective date of 1 January 2023. Thanks to this deal, the French player will acquire a 20 per cent participating interest in the Satah Al Razboot (SARB), Umm Lulu, Bin Nasher and Al Bateel (SARB and Umm Lulu) offshore concession. 

In addition, the oil major will acquire a 12.88 per cent indirect interest in the Mubarraz concession held by Abu Dhabi Oil Company (ADOC), through the acquisition of 20 per cent of Cosmo Abu Dhabi Energy Exploration & Production Co. (CEPAD), a company holding a 64.4 per cent interest in ADOC. 

Maarten Wetselaar, CEO of Cepsa, commented: “This transaction positions Cepsa to accelerate its strategic intent to migrate its businesses into new sustainable areas such as green hydrogen or biofuels, as well as the development of the first ultra-fast charging network for electric vehicles in Spain and Portugal. We truly value the close partnerships we have developed with the government of Abu Dhabi and ADNOC over the years.”

According to TotalEnergies, the SARB and Umm Lulu concession, where ADNOC holds a 60 per cent interest alongside OMV (20 per cent), includes two major offshore fields and is operated by ADNOC Offshore. On the other hand, the Mubarraz concession is comprised of four producing offshore fields.

Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, remarked: “This transaction represents another important milestone in our long-standing partnership with ADNOC and will further strengthen our presence in Abu Dhabi where we have been present since 1939. The acquisition of a 20 per cent working interest in SARB and Umm Lulu concession is fully aligned with our strategy of focusing on low-cost, low-emission assets.”

The French giant explained that the SARB and Umm Lulu transaction and the Mubarraz transaction were subject to satisfaction of customary conditions precedent, including the formalisation of documentation and final approvals.

Furthermore, TotalEnergies has been present in the United Arab Emirates for more than 80 years. In January 2022, the company joined Masdar and Siemens Energy in an initiative to drive green hydrogen development and produce sustainable aviation fuel.

A few months later, TotalEnergies and ADNOC inked a strategic partnership agreement that aims to jointly evaluate new growth opportunities through multi-energy cooperation across the entire energy value chain.

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In partnership with ADNOC, TotalEnergies holds a 10 per cent interest in the ADNOC onshore oil concession, 20 per cent in the offshore Umm Shaif and Nasr oil concession, and 5 per cent in the offshore Lower Zakum oil concession.

Additionally, the French player holds a 15 per cent stake in ADNOC Gas Processing (former GASCO), 5 per cent in ADNOC LNG (former ADGAS), 5 per cent in the National Gas Shipping Company (NGSCO), and 40 per cent in the Ruwais Diyab unconventional gas concession.

Moreover, TotalEnergies, in partnership with Mubadala, holds a 24.5 per cent stake in Dolphin Energy“the first gas marketing project” between QatarUAE, and Oman (2007).

France’s energy giant has been active in the UAE’s power generation since 2001 through the Taweelah desalination plant and power station, which meets around 10 per cent of Abu Dhabi’s water and electricity needs, in partnership with TAQA.

Regarding renewables, TotalEnergies, thanks to a 20 per cent stake, is a partner of Masdar and ADPF in UAE’s first Concentrated Solar Power plant, which was inaugurated in 2013 with a capacity of 109 MW.

When it comes to TotalEnergies’ activities elsewhere, it is worth noting that the French player was recently awarded two offshore licenses to explore CO2 storage potential in the Danish North Sea.