French oil firm acquires stake in Abu Dhabi’s upstream assets

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French oil company TotalEnergies has acquired the upstream assets in the UAE of Spanish energy company Cepsa, it was announced on Wednesday.

The deal covers the purchase of a 20 percent stake in the Satah Al Razboot (SARB), Umm Lulu, Bin Nasher and Al Bateel (SARB and Umm Lulu) offshore concession, which includes two major offshore fields, the statement said.

In addition, it covers the purchase of a 12.88 percent indirect interest in the Mubarraz concession held by Abu Dhabi Oil Company Ltd, which comprises four producing offshore fields.

“The acquisition of a 20 percent working interest in SARB and Umm Lulu concession is fully aligned with our strategy of focusing on low-cost, low emission assets,” said Patrick Pouyanne, chairman and CEO of TotalEnergies.

The financial terms were not disclosed.

Cepsa said that the transaction achieves the key objectives set out in its 2030 “positive motion” strategy regarding becoming a leader in sustainable mobility, biofuels and green hydrogen in Spain and Portugal.

As part of this goal, Cepsa has committed to invest €8 billion ($8.5 billion) this decade.

In January 2022, TotalEnergies joined Masdar and Siemens Energy to drive green hydrogen development and produce sustainable aviation fuel.

TotalEnergies and Abu Dhabi National Oil Company have also signed a strategic partnership agreement that aims to jointly evaluate new growth opportunities.