The onshore gas development projects AGD-2 and AGD.3
presently planning an expansion of gas processing capacity under handle the additional gas that will be produced once the onshore gas development projects(AGD-2 and AGD.3) icipal completed in 2007-2008. This is the fields Management and Administration of GASCO GASCO is controlled by ADNOC(68 percent holdin oil fields.
Shell(15 percent eacl) and Partex(2 ADNOC The business and affairs of GASCO are managed by a B is the gas Directors composed of seven Directors, of whom a a participat four and Total, Shell and Partex each appoint one.
The Charmaine operating the Board is nominated by ADNOC and appointed by the share in the from among its members. ratio of ope Resolutions of the Board are passed with the approval of The Director from ADNOC and a Director appointed by either Total define arr capacity f Shell-except for matters of particular importance, where the approval of all the Directors entitled to vote is required, They participant matters include, inter alia: operating fee, amour alteration of the articles of association; calendar y sale, liquidation or renewal of the lifespan of GASCo agent for e years); alteration of share capital finished p terms and conditions of loans; and e partners, any expansion of the NGL complex beyond its design capacity shareholdi or any change in its scope of operations succeeded The General Manager is nominated by ADNOC and appointd of the bul by the Board according to the terms and conditions that it ha approved. Petroleum The joint venture agreement is supplemented by a number 12, 1978 additional agreements which include a Gas Supply and Pay sharehold Agreement(GSPA) and a Processing and off-take Agreement.
ABU DHABI’s GAS EXPERIENCE
ABU DHABI’s GAS EXPERIENCE capacity have with percent a B of oard appoint Board of a Total or the These it bus the GSPA, ADNOC agrees to supply to each participant a quantity of associated gas from the oil fields which is equal to each participant’s share of the processing capacity of the LNG complex. This is subject to the availability of such quantities of crude oil from the fields and the requirements for use o such quantities determined by the operating company ADCo for the efficient operation of the oil fields ADNOC, as owner on behalf of the government and supplier of the gas, is entitled to a gas payment from the participants.
However a participant is not required to make any payment if its actual net operating income in a calendar year is less than 25 percent of its share in the total investment during the five years after commencement of operations, or is less than 15 percent following this period. The purpose of the Processing and off-take Agreement is to define arrangements relating to the availability of processing capacity for associated gas, the off-take of the products by the participants and the payment by each participant to GASCO(as an operating company representing the participants) of its processing fee, amounting to the participant’s share of GASCO’s costs for each calendar year. This agreement confirms GASCO as the processing agent for each participant GASCO is not, however, entrusted with the task of marketing the finished products, as this is the responsibility of the joint venture partners, each of which receives an entitlement in proportion to its capacity, shareholding.
Japan is ADNOC’s main market, where it has succeeded in concluding contracts with regular clients for the sale of the bulk of its share of LPG output.
As in the case of ADGAS, a letter from the Department of Petroleum was issued to the shareholders of GASCO(on December 12, 1978) establishing the fiscal arrangements by which the number shareholders are bound. Since GASCO is just a processing company for its shareholders and does not independently market the finished.