Abu Dhabi National Oil Company (ADNOC) is combining its two biggest offshore operations, as part of efforts to streamline management and operations and enforce an entrepreneurial culture in what is predicted to be a prolonged slump in oil prices
The two firms that are being combined – the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco) – total a large proportion of Abu Dhabi’s offshore oil production, which is expected to reach 1.7 mn barrels per day at some point next year (2017).
According to Adnoc, Abu Dhabi production is around 3.1mn bpd.
“The consolidation of Adma-Opco and Zadco is a logical step … [given] Adnoc’s recent focus on driving efficiency, performance and profitability,” said Sultan Al Jaber, Adnoc’s chief executive and minister of state.
Al Jaber said the consolidation “will facilitate enhanced operational performance while providing strategic benefits for future growth and advanced technology integration … It will [also] unite our offshore experience, streamline governance and decision-making, and give management a better line of sight.”