FINANCIAL TIMES | Abu Dhabi to pay By Richard Johns, Middle East Correspondent R 25.1 THE Government of Abu Dhabi will pay $152m. for its initial 25 per cent. participation in the operations of its two oil conces sionaires, it was officially an nounced yesterday by Mr. Mani al Oteiba, the Minister of Petroleum and Industry, This compares with the sum of $150m. for which Kuwait is liable for its share in the opera tions of the Kuwait Oil Company (a 50:50 partnership between British Petroleum and Gulf). KOC's output at nearly 150m. tons last year was larger than the 50m. tons of the Abu Dhabi Petroleum Company and Abu Dhabi Marine Areas combined, but the investment in Kuwait for the most part was smaller relative to production and was made much earlier. Thus, despite the formula for compensation of "updated book' values” included in the participation agreement, its obligations are much less. The main beneficiary in Abu Dhabi will bc BP. Following the deal under which it sold 45 per cent. of its offshore interests, it had 363 per cent. of ADMA for which the share of the $152m. is believed to have been about $80m. In addition, it has 23.75 per cent of ADPC which is an affiliate of the Iraq Petroleum Company. However, Mr. Oteiba late last year claimed a share for the state of the $780m. which the Japanese group Overseas Petroleum Corporation is pay. ing BP for its stake in ADMA.! As yet there appears to have been no discussions between the Government and BP on his claim. Saudi Arabia and Qatar have not officially announced the sum that they are paying for 25 per cent. participation which became operative in all four States from the beginning on this year (although the Kuwait National Assembly has yet to ratify the agreement). However, Saudi Arabia is known to be liable for close tol $500m. for its stake in the Arabian American Oil Company (Exxon, Mobil, Texaco and Standard California). • For Oatar the assessment is believed to be $71m., with Shell's offshore operation accounting for rather more than $40m. and the balance going to the on-shore Qatar Petroleum Company (another affiliate of IPC). Mr. Oteiba said that additional state income as a result of par ticipation would total $226m. over the next three years-in other words, the compensation payment would be covered in about two years by incremental revenue.
