In a first, The Oil and Natural Gas Corporation (ONGC) led a consortium to acquire Abu Dhabi National Oil Co’s (ADNOC) 10 per cent stake.
The 10 per cent stake consists of a 40-year offshore oil concession. With this deal the UAE hopes to expand its market in the South Asian region.
The agreement between ONGC Videsh led consortium and ADNOC gives the former, the drilling rights over 40 year period at a participation fee of 2.2 billion dirhams ($600 million)
The other members of the ONGC Videsh led consortium was Indian Oil Corporation and Bharat Petroleum Resources Ltd. The high level event was attended by Crown Prince Sheikh Mohamed bin Zayed al-Nahyan and Prime Minister Narendra Modi.
The agreement will come into effect from March 9, said ADNOC.
The current production rate of ADNOC is 700,000 barrels per day (bpd) which is expected to reach 1 million bpd by 2021.