French energy and petroleum company TotalEnergies has signed an agreement to acquire Spanish multinational oil and gas company Cepsa’s upstream assets in the UAE.
The upstream assets include a 20% participating interest in the Satah Al Razboot (SARB), Umm Lulu, Bin Nasher and Al Bateel offshore concession.
The acquisition also includes a 12.88% indirect stake in the Mubarraz concession held by Abu Dhabi Oil Company (ADOC).
TotalEnergies will acquire a stake in Mubarraz concession by purchasing 20% of Cosmo Abu Dhabi Energy Exploration & Production (CEPAD), which holds a 64.4% stake in ADOC.
The SARB and Umm Lulu concessions host two major offshore fields, while the Mubarraz concession includes four producing offshore fields.
The transaction is subject to the satisfaction of customary conditions precedent, including the formalisation of documentation and final approvals.
TotalEnergies chairman and chief executive officer Patrick Pouyanné said: “This transaction represents another important milestone in our long-standing partnership with ADNOC and will further strengthen our presence in Abu Dhabi, where we have been present since 1939.
“The acquisition of a 20% working interest in SARB and Umm Lulu concession is fully aligned with our strategy of focusing on low-cost, low-emission assets.”
Cepsa said that the transaction supports its Positive Motion strategy for 2030, which focuses on sustainable mobility, biofuels and green hydrogen in Spain and Portugal.
To further support its strategy, the company has committed to invest €8bn this decade.
Cepsa CEO Maarten Wetselaar said: “This Transaction positions Cepsa to accelerate its strategic intent to migrate its businesses into new sustainable areas such as green hydrogen or biofuels, as well as the development of the first ultra-fast charging network for electric vehicles in Spain and Portugal.
“We truly value the close partnerships we have developed with the Government of Abu Dhabi and ADNOC over the years.”
Earlier this year, Cepsa signed an agreement with Portuguese electric utilities company EDP to work on large-scale green hydrogen production in the Bay of Algeciras.
