TotalEnergies acquires the upstream assets of Spain’s Cepsa in the Emirates

TotalEnergies announced on Wednesday the acquisition of the upstream oil assets (exploration and extraction) of the Spanish company Cepsa in Abu Dhabi. This operation strengthens the French company ‘s ties with the national oil company of the United Arab Emirates (UAE).

Strategic assets

TotalEnergies has signed an agreement with Cepsa to acquire its upstream assets in the UAE with an effective date of January 1, 2023. The assets involved in the transaction include a 20% interest in the Satah Al Razboot (SARB) and Umm Lulu offshore concession, 60% owned by the Abu Dhabi National Oil Company (ADNOC). Another asset is “an indirect participation of 12.88%” in the Mubarraz concession, held by Abu Dhabi Oil Company Ltd (ADOC), which has “four offshore fields in production”.

Strengthening the presence in Abu Dhabi

This acquisition, subject to final approvals, “marks another important step in our long-standing partnership with ADNOC and will further strengthen our presence in Abu Dhabi, where we have been operating since 1939,” said Patrick Pouyanné, CEO of TotalEnergies. This transaction also strengthens TotalEnergies’ relationship with the UAE, one of the world’s largest oil producers.

Cepsa’s repositioning

For its part, Cepsa sees this transaction as a way to “accelerate” its repositioning as a “leader in sustainable mobility, biofuels and green hydrogen in Spain and Portugal”. The Spanish company wants to reduce its dependence on fossil fuels and turn more to renewable energies.

A transaction without specifying the amount

TotalEnergies did not specify the amount of the transaction, which is subject to approval by the relevant authorities. However, the French company stressed that this acquisition would strengthen its position in the Middle East region, which is a key market for the group.

This acquisition demonstrates TotalEnergies’ determination to pursue its activities in the hydrocarbon sector while gradually moving towards renewable energies. It also strengthens the group’s presence in Abu Dhabi, one of the world’s largest oil producers.