Fruitful investment of oil revenues and diversify income sources

Fruitful investment of oil revenues and diversify income sources

The organizational structure of Abu Dhabi’s oil industry secure more fruitful investment of oil revenues and diversify income sources (avoiding complete dependence,  as in the past,  on income derived from crude oil sales);  provide functions such as petroleum services,  especially those presenting a certain degree of strategic importance to the industry,  and provide a large number of nationals with the opportunity to gain technical and managerial experience and practical training in the oil industry ADNOC decided to undertake some of these activities independently,  while others could be accomplished through cooperation or joint ventures with foreign partners.  Exploration and Production As mentioned earlier,  the creation of ADNOC in 1971 coincided with the peak of the trend in the oil-producing countries for national participation in existing concessions. 

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THE PETROLEUM INDUSTRY IN ABU DHABI Subsequent Takeovers in Some Countries of the Region

THE PETROLEUM INDUSTRY IN ABU DHABI Subsequent Takeovers in Some Countries of the Region

The Abu Dhabi government was content with a 60 percent participation arrangement.  However,  over time other countries in the area achieved a 100 percent takeover of the oil companies operating in their respective countries Kuwait announced on March 5,  1975 that as of that date it had taken over all the assets of the Koc.  In February 1976,  Kuwait began negotiations for the takeover

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THE GRowTH or THE PETROLEUM INDUSTRY IN ABU DHABI

THE GRowTH or THE PETROLEUM INDUSTRY IN ABU DHABI

The Kuwait National Petroleum Company(KNPC) was established in 1960; the General Petroleum and Mineral Organization(PETROMIN) was established in Saudi Arabia in 1962; and the Iraq National Company was established in 1965. The emirate of Abu Dhabi would wait until November 1971 to establish its Abu Dhabi National Oil Company(ADNOC) Nationalization of the Oil Industry in the Middle East Al Chalibi writes: The attempt at nationalization made by the Mossadegh Government in Iran in the early fifties was the first world event which, despite its failure, had a far-reaching political impact on the concession system and which led to its first shake-up In Algeria some independent US companies holding small concessions were seized by the government in 1967, and in December 1971 Libya nationalized the British Petroleum(BP) share in the joint venture with Bunker Hunt. Al Chalibi continues: However, the successful radical experiment in nationalization which completely reversed oil relationships in the Middle East was the nationalization by the Iraqi government of IPC(Iraq Petroleum Company Ltd., covering the northern fields) in th summer of 1972, followed by the nationalization of the Basrah Petroleum Company(covering the southern fields) whi in turn led by 1975 to total nationalization of all Inaqi oil New Investors in the Oil Industry of the Middle East One of the major developments in the postwar period was the appearance on the international scene of oil companies outside the Majors and their entry to the oil industry in the producing countries.

The Italian national oil company, Enter Nationalize ldrocarburi (ENI) was the pioneer in this respect, followed by the French Company Enterprise des Researcher et activities Petrologist(ERAP) and the Japanese Petroleum Trading Company.
These companies concluded agreements with the governments certain producing countries that were more favorable to tho countries, in the form of joint ventures and serv contracts subseq A number of American independent oil companies, like occidenta and Pan American, also entered the industry. The Arab particip the are operati and Gas Directory 2005 notes: Kuw The entry of these new investors into regions dominated by the Cartel created a new situation that fed national aspirations to be rid of the companies’ control and to resort to taken began independent companies for securing technological expertise operati crude oil marketing outlets and capital needs to meet investmen but wh Amino risks Star of its Participation in Existing Concessions the Q The concept of participation of the host countries in existing Shell i concessions gained increasing support among the major oil operatic producing countries in the 1960s and was soon to receive the produc blessing of the newly established forum of the oil produce In S OPEC. The first formal approbation of OPEC came in 1968. L Aramce in September 1971, OPEC called on members to establish negotiations to achieve effective participation.” Negotiati effectively began in May 1972 between the producers(as a group) and the and a group of the oil companies, leading to the General Agreement assets 5, 19 exploit on Participation which was signed in Riyadh on October lt was initially signed by Saudi Arabia and Abu Dhabi, followed pursue by Qatar and Kuwait. concern In view of the importance of participation which repr Arabia a radical change in the oil industry of the Middle East-the su to Dh feature will be dealt with later in some detail, outlining its main upstream and the practical manner in which it has been implemented in t Abu Dhabi oil industry.

The British businessman William D’Arcy

The British businessman William D’Arcy

The British businessman William D’Arcy obtained an important concession for oil exploration in Iran on May 28,  1901 After the end of the First World War the struggle for control of the countries of the Middle East and their promising oil resources intensified between the United States and the European powers.  The Europeans were anxious to control these countries after the collapse of the Ottoman Empire.

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