ADNOC announced its intention to merge company, “ADMA” & “ZADCO”admin
Date: October 4, 2016
Source: Abu Dhabi – Emirates Today
It announced the Abu Dhabi National Oil Company “ADNOC”, today announced its intention to integrate the operations of Abu Dhabi Marine Operating Company areas, “ADMA-OPCO,” and Zakum Development Company “ZADCO”, the new company will be responsible for promoting efficiency and standardization of processes and overseeing the operation of all of the fields of marine and privileges the two companies, including the Zakum field, which is the largest offshore oilfield in the world in terms of reserves.
The merger will bring significant financial and operational benefits, the new company resulting from this merger will be more flexible and prepared to deal with changing market demands, as well as possessing the ability to take advantage of strategic opportunities for future growth.
Commenting on the merger, he said Minister of State and Chief Executive Officer of ADNOC Group of Companies, Dr. Sultan Ahmed Al Jaber, “in line with the directives of the leadership, focus ADNOC at this stage to raise the performance and operational efficiency and enhance profits, productivity and a continued focus on better health and safety for workers and facilities standards. The process merger between “ADMA” and “ZADCO” a logical step contribute to achieving these goals, as well as enhance operational performance and achieve several strategic advantages that support future growth and enhance the integration of infrastructure and technology management and performance. It will contribute this merger to unite ADNOC experience in the field offshore fields will also help to facilitate the process of governance and decision-making and give the management team to see a broader and deeper operations. ”
“It is certain that the integration of the two companies into a new single company responsible for operating privileges relevant will help in achieving the strategic objectives of the ADNOC Group and of strengthening profitability and improved performance, especially in the field of exploration, development, production and efficiency, which will benefit all of ADNOC and its partners. The the integration of the two companies provides an ideal model for ADNOC’s efforts to develop its business in order to achieve greater value in the growing energy sector rapidly. ”
The focus ADNOC Group since the second quarter of 2016 on the four pillars include the best investment for human capital, and improve performance, enhance profitability and operational efficiency, so as to achieve four strategic objectives include the promotion of economic returns and profitability within the exploration, development and production business, and enhance the value of refining and petrochemicals, and the provision of more gas supply, and the development and empowerment of human resources.
And will cooperate “ExxonMobil” and “Total” and “BP”, and Japan Oil Development Company Limited (JODCO), the foreign oil companies operating currently with Adma and Zadco, through mergers with ADNOC to ensure continuity of operations and enhance the volume of production and the preservation of the best stage safety levels.
And it will form a “ADNOC” and its partners have a steering committee to oversee the integration process. And will take Yasser Al Mazroui, CEO of the company, “ADMA-OPCO,” the task of CEO, “ZADCO” also during the transitional phase, where will work with the steering committee to achieve the integration process and to ensure the continuity of operations running smoothly and efficiently. It is expected to complete the merger in 2018.
Upon completion of the merger between the “ADMA” and “ZADCO,” the new company operating in the marine areas will be operated by the relevant maritime liens. His Excellency Dr. Sultan Ahmed Al Jaber said that “the current franchise rights for our partners in each of ADMA-OPCO and ZADCO will not be affected by the merger. ADNOC will continue in the future to study all options and determine partners for privileges, which expires in 2018”.
The “ADNOC” owns 60% of the “ADMA”, owns the remaining shares all of the “BP” and “Total” and “JODCO”, also owns “ADNOC” 60% stake in the company, “ZADCO”, owns the remaining shares each of “ExxonMobil” and “JODCO.”