French energy company TotalEnergies has signed an agreement with Cepsa to acquire the Spanish oil and gas company’s upstream assets in the UAE.
The deal includes a 20 per cent stake in the offshore concession consisting of the Satah Al Razboot (Sarb) and Umm Lulu oil fields, TotalEnergies said in a statement on Wednesday. Adnoc holds a 60 per cent interest in the Sarb and Umm Lulu concession, which is operated by Adnoc Offshore and includes two major offshore fields.
TotalEnergies will also take a 12.88 per cent indirect interest in the Mubarraz offshore concession held by Abu Dhabi Oil Company. The concession includes four offshore fields.
The financial details of the transaction were not disclosed.
“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,” said Patrick Pouyanne, chief executive of TotalEnergies.
“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.”
In 2018, Cepsa, majority owned by Abu Dhabi’s strategic investment fund Mubadala Investment Company, signed a 40-year concession agreement with Adnoc to operate Sarb and Umm Lulu.
The deal is contingent upon the fulfilment of standard requirements, such as the finalisation of documentation and obtaining the necessary approvals, TotalEnergies said.
Total Energies already has a strong presence in the UAE.
In partnership with Adnoc, it 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, among others.
In July last year, Adnoc and TotalEnergies signed a strategic partnership agreement to explore new opportunities for growth across the energy value chain.
Under the terms of the agreement, the companies will explore opportunities to collaborate in gas growth, carbon capture utilisation and storage, and trading and product supply.
Adnoc, responsible for most of the UAE’s oil and gas output, plans to raise its production to five million barrels per day by 2027.
The company has been investing heavily in the production of natural gas and hydrogen as the UAE seeks to reach net-zero emissions by 2050.
