Cepsa has reached an agreement to sell its upstream assets in Abu Dhabi to TotalEnergies for an undisclosed amount.
Cepsa will transfer its 20% interest in the Satah Al Razboot (SARB), Umm Lulu, Bin Nasher and Al Bateel concessions and its indirect 12.88% interest in the Mubarraz concession. It holds an interest in Mubarraz through a stake in Cosmo Abu Dhabi Energy Exploration & Production.
The companies did not provide an expected completion date. They did say, however, that its effective date is January 1, 2023.
Patrick Pouyanné, Chairman and CEO of Total, said: “This transaction represents another important milestone in our long-standing relationship with Adnoc and will further strengthen our presence in Abu Dhabi, where we have been since 1939 Do business.”
“The acquisition of a 20% working interest in the SARB and Umm Lulu concessions is fully in line with our strategy to focus on low-cost, low-emission assets.”
Cepsa said the sale is designed to allow it to focus on its Positive Motion strategy. This will make Cepsa a leader in sustainable transport, biofuels and green hydrogen in Spain and Portugal, the company said.
Chief executive Maarten Wetselaar said the sale “enables Cepsa to accelerate its strategic intent to migrate the business”. He singled out green hydrogen and biofuels, “as well as the development of the first ultra-fast charging networks for electric vehicles in Spain and Portugal”.
Adnoc owns 60% of the SARB and Umm Lulu concessions, while OMV owns 20%.
Abu Dhabi Oil Company (ADOC) operates Mubarraz. Cosmo Abu Dhabi holds a 64.4% stake in ADOC. Mubarraz covers four offshore producing fields: Uhm Al Anbar, Neewat Al Galan, Mubarraz and Hail.
Cepsa’s decision is in line with many other European energy companies that have chosen to focus on transformational strategies rather than international exploration and production.
Ovie Announced this week that it will sell its Asia-Pacific assets, also citing its focus on sustainable fuels. Similarly, Galp sells its Angolan assets to a local company Focus on decarbonization.
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