- The name of this Company was changed to Abu Dhabi Petroleum Company—“ADPC”—in 1962. Ownership shares in this Company were as follows: BP 23–75 per cent., Shell 23–75 per cent., CFP 23–75 per cent., Exxon and Mobil Oil together 23–75 per cent, and the Gulbenkian Interest (Partex) five per cent.
- ADMA was originally owned two thirds by BP and one third by CFP, but in 1972 BP sold 45 per cent, of their shares in ADMA to the Japan Oil Development Company (“JODCO”).
- A sliding-scale royalty is also applicable going up from 12.5 per cent. to 20 per cent. as the level of production increases.
- This law follows closely a model established by OPEC for adoption in the member countries. It provides for the rules and regulations according to which all operations (exploration, drilling, production…) should be carried out to comply with the most efficient scientific techniques and methods. It spells out, inter alia, the precautions that should be taken to safeguard health and safety of employees, to prevent pollution, and the reporting obligations of the operating companies to the government authority and the prior authorisations and permissions they have to obtain. Utilisation of gas is regulated. The law imposes fines for violations of its provisions.
- Gas projects include Abu Dhabi Liquefaction Company (ADGAS) (51 per cent. ADNOC) for the liquefaction of offshore gas, Abu Dhabi Gas Industries Limited (GASCO) 68 per cent. ADNOC), for the exploitation of the onshore associated gas and Ruwais Fertilizer Industries (FERTIL) (66 ⅔ per cent. ADNOC); other industrial projects include Abu Dhabi Drilling Chemicals and Products Limited (ADDCAP (75 per cent. ADNOC), and Abu Dhabi National Plastic Pipe Fabrication Company (NPP) (51 per cent. ADNOC).
- e.g. National Petroleum Construction Company (NPCC) (70 per cent. ADNOC), National Marine Services (NMS) (60 per cent. ADNOC) Abu Dhabi Petroleum Ports Operating Company (ADPPOC) (60 per cent. ADNOC).
- Viz. in accordance with the OPEC Formula, income tax now at 85 per cent, and the royalty at 20 per cent, to be expensed (i.e. to be considered as one of the expenditures of the chargeable party and to be deducted from its gross revenue to determine its net income).
- Above pp. 2–5.
- Above pp. 13–16.
- Above p. 12.
- A sliding-scale royalty is also applicable going up from 12–5 per cent, to 20 per cent, as the level of production increases.
- K. Blinn, C. Duval, H. Le Leuch and A. Pertuzio, International Petroleum Exploration and Exploitation Agreements, (Barrows, New York, 1986), pp. 308–309.
Journal of Energy & Natural Resources Law
Volume 6, 1988 - Issue 1