Korea GS Energy secures oil concession in Abu Dhabi

Friday 08/05/2015
ADCO is aiming to increase production to 1.8 million bpd

ABU DHABI - Korean group GS Energy secured a three-percent share in an onshore oil concession in oil-rich Abu Dhabi on Wednesday, making it the third company with a participating share in production.

The agreement signed by Abu Dhabi National Oil Company (ADNOC) and GS Energy gives the Korean firm a 40-year concession, state news agency WAM reported.

"The share amounts to three percent," it said, without giving a value.

The Korean firm becomes the third foreign company after France's Total and Inpex of Japan to participate in the concession.

ADCO oilfields produce 1.6 million barrels per day and the UAE company is aiming to increase production to 1.8 million bpd.

In January, Total clinched a 10-percent participating share in the concession, while Inpex has five percent.

Total had held 9.5 percent in a 75-year concession that expired last year.

Other companies with shares in the old concession included American Exxon and Shell, 9.5 percent each, in addition to a two-percent share held by Portugal's Partex.

ADNOC controlled 60 percent of the concession.