Adnoc combines its two largest offshore units, part of Abu Dhabi state oil firms streamlining effort
Abu Dhabi National Oil Company (Adnoc) is combining its two largest offshore operations, part of its broader effort to streamline management and operations and drive an entrepreneurial culture in what is expected to be a prolonged low oil price environment.
The two companies that are being combined the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco) account for the bulk of Abu Dhabis offshore oil production, which is expected to reach 1.7 million barrels per day by some time next year.
Overall Abu Dhabi production is about 3.1 million bpd.
The reorganisation will mean that the two companies will be dissolved and their ownership combined into one NewCo. The chief executive of Adma-Opco, Yasser Saeed Al Mazrouei, will head up both Adma and Zadco while the reorganisation proceeds. Zadcos chief, Saif Nasser Al Suwaidi, will retire.
The consolidation of Adma-Opco and Zadco is a logical step [given] Adnocs recent focus on driving efficiency, performance and profitability, said Sultan Al Jaber, Adnocs chief executive and Minister of State. Mr 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.
Since he took over earlier this year, Mr Al Jaber has made sweeping changes to the state oil company, ....