Current Affairs - National - Discussion

A consortium of the Indian oil companies and UAE-based Abu Dhabi National Oil Company (ADNOC) signed a concessional agreement for the acquisition of 10% participating interest in the offshore Lower Zakum Concession. This is the first time ever that an Indian Consortium has received concession in the Gulf. The concessional agreement between Indian oil companies and ADNOC is for 40 years from 2018 to 2057 and the participation fees are valued at $600 million. For this agreement, the Indian consortium is led by Oil and Natural Gas Corp (ONGC), while Indian Oil Corporation and Bharat Petro Resources Ltd. are the other members. A negotiated contract between a business entity/ business consortium and a government that gives the business entity/ business consortium the right to operate a specific business within the government's jurisdiction is referred to as concessional agreement.