Dubai – Mubasher: The Abu Dhabi National Oil Company (ADNOC) has signed a new 40-year deal with Spain's Cepsa for a 20% stake in the concession of Umm Lulu and Satah Al Razboot, or SARB, fields, the state-owned company announced on Sunday.

Under the agreement, Cepsa will pay a participating fee of AED 5.5 billion ($1.5 billion) to enter the concession with 20%, while ADNOC offshore, ADNOC’s unit, owns 60% of the concession and the remaining 20% stake is still open for further partners.

The concession area comprises two main fields under development; Umm Lulu, which is a part of the former ADMA offshore concession, and SARB, in addition to two smaller fields, Bin Nasher and Al Bateel, the UAE-based company revealed.

"We are also working with Cepsa to explore expansion opportunities in our downstream business, in the UAE and overseas, that will deliver competitive returns and long term growth opportunities for both parties, and for the UAE," ADNOC’s CEO Sultan Al Jaber commented.

Cepsa recorded an output of 35.4 million barrels of oil in 2016, with other 158.7 million barrels refined, while sold 28.3 million tonnes of petroleum products.

“This concession agreement marks an important moment for Cepsa and our close relationship with ADNOC, with whom we are working with on a number of projects in the upstream, downstream, and petrochemical sectors,” Cepsa’s CEO Pedro Miró concluded.